Business

State’s Unemployment Dept. Urged to Focus More on Workers’ Claims, Less on Fraud Report Recommendation to Cal EDD: Focus Less on Fraud, More on Employees

“There’s no ongoing relationship between workers and EDD in the same way that there is with business and EDD,” said report author Chas Alamo, LAO’s principal fiscal and policy analyst. “We think this partnership or orientation towards the business community has sort of encouraged the state and the department to prioritize policies that would tend to favor minimizing business costs and eliminating fraud rather than prioritizing getting benefits to workers.”

Published

3 years ago

September 10, 2022

Oakland Post

In response to the report, the EDD released a statement where they acknowledged changes needed to be made.

By Edward Henderson, California Black Media

A new report by California’s Legislative Analysist Office (LAO) offers recommendations for the state’s Employment Development Department (EDD) to improve their functionality and timeliness of their Unemployment Insurance (UI) Program.

The UI program provides temporary wage replacement to unemployed workers to help alleviate their economic challenges and bolster the state economy during downturns.

The increased volume of unemployment claims (both valid and fraudulent) and challenges out-of-work people faced caused by the pandemic highlighted the need to rebalance the program.

Lengthy review processes and holds on valid claims caused hardship for workers and their families, hindered the state’s economic recovery, and spurred frustration among unemployed Californians with their government.

During the COVID-19 pandemic, EDD delayed payments to nearly 5 million workers and improperly denied payments to an estimated 1 million people.

Report author Chas Alamo, LAO’s principal fiscal and policy analyst, links the UI program’s issues to its basic design which hasn’t changed much since the 1930s.

UI benefits are funded by employers. Over time, this has created a relationship with the EDD that employees don’t have. While an employee may apply for benefits once or twice during their entire career, employers have become the EDD’s primary customer because they’re interacting with them on a consistent basis.

“There’s no ongoing relationship between workers and EDD in the same way that there is with business and EDD,” said Alamo. “We think this partnership or orientation towards the business community has sort of encouraged the state and the department to prioritize policies that would tend to favor minimizing business costs and eliminating fraud rather than prioritizing getting benefits to workers.”

The LAO’s report features 12 targeted changes for the EDD to make to improve their operations and relationships with employees seeking benefits. The changes acknowledged unemployment workers experience in three key areas:

Improper Claim Denials Were Numerous

More than half of the UI claims the EDD denies are overturned on appeal. Overturned denials cause lengthy delays for workers who appeal and raise concern that the state denies many eligible workers. Likely between $500 million and $1 billion in UI payments annually go unpaid each year due to improper denials.

Claim Delays Need to be Reduced

More than half of UI claims were delayed during the peak of the pandemic, for many workers by several months. Between 15% and 20% of workers who apply for UI during normal economic times experience delays.

The UI Application Needs to be Simplified

The state’s UI application and ongoing requirements are difficult to understand and unnecessarily lengthy. Answers to many of the questions asked of employees are already on file in the EDD.

Many of IU’s problem areas were magnified during the pandemic. An estimated $20 billion has been lost to fraudulent California claims, according to EDD estimates. All but $1.3 billion of that total involved claims from federally funded COVID relief programs, which ended last year. The response to this has made it even more difficult for valid claims to be processed.

“During the pandemic the state was under incredible pressure to cut down on fraud so the department ramped up some of its already high levels of fraud detection efforts. They took several steps that measurably and meaningfully reduced fraud in the federal program. And they should be commended for those steps. But they also took steps that really slowed down the process for otherwise eligible workers and led to these delays.”

In response to the report, the EDD released a statement where they acknowledged changes needed to be made.

“EDD appreciates and will carefully review the LAO’s ideas for further simplifying processes and speeding up the delivery of services to Californians. Many of these ideas, such as limiting improper claim denials and minimizing delays, have been incorporated into EDD actions over the past year. As part of California’s commitment to improving EDD’s customer service, the recently enacted state budget includes $136 million for EDDnext, a major effort to modernize EDD and further improve the customer experience … We agree with the LAO that “EDD must balance the need to prevent fraud … with the priority to deliver payments in a timely and easy manner.”

While Alamo concedes that some of the reported changes the EDD plans to make will help, he also believes that a large number of the recommendations made in the report go beyond the steps the department has proposed to take.

“The pressure really is on now to begin those efforts so that some of these improvements are in place the next time millions of workers turn to EDD for UI benefits during the next downturn. And if historical precedent tells us anything that’s going to be within 10 years. The clock starts ticking and there really is not a lot of time that the state or the Legislature can wait before undertaking some of these improvements,” Alamo said.

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Activism

Lu Lu’s House is Not Just Toying Around with the Community

Wilson and Lambert will be partnering with Mayor Barbara Lee on a toy giveaway on Dec. 20. Young people, like Dremont Wilkes, age 15, will help give away toys and encourage young people to stay in school and out of trouble. Wilkes wants to go to college and become a specialist in financial aid. Sports agent Aaron Goodwin has committed to giving all eight young people from Lu Lu’s House a fully paid free ride to college, provided they keep a 3.0 grade point average and continue the program. Lu Lu’s House is not toying around.

Published

4 days ago

December 20, 2025

Oakland Post

Tania Fuller Bryant, Zirl Wilson, Dremont Wilkes, Tracy Lambert and Dr. Geoffrey Watson. Courtesy Oakland Private Industry

Special to the Post

Lu Lu’s House is a 501c3 organization based in Oakland, founded by Mr. Zirl Wilson and Mr. Tracy Lambert, both previously incarcerated. After their release from jail, they wanted to change things for the better in the community — and wow, have they done that!

The duo developed housing for previously incarcerated people, calling it “Lu Lu’s House,” after Wilson’s wonderful wife. At a time when many young people were robbing, looting, and involved in shootings, Wilson and Lambert took it upon themselves to risk their lives to engage young gang members and teach them about nonviolence, safety, cleanliness, business, education, and the importance of health and longevity.

Lambert sold hats and T-shirts at the Eastmont Mall and was visited by his friend Wilson. At the mall, they witnessed gangs of young people running into the stores, stealing whatever they could get their hands on and then rushing out. Wilson tried to stop them after numerous robberies and finally called the police, who Wilson said, “did not respond.” Having been incarcerated previously, they realized that if the young people were allowed to continue to rob the stores, they could receive multiple criminal counts, which would take their case from misdemeanors to felonies, resulting in incarceration.

Lu Lu’s House traveled to Los Angeles and obtained more than 500 toys
for a Dec. 20 giveaway in partnership with Oakland Mayor Barbara
Lee. Courtesy Oakland Private Industry,

Wilson took it upon himself to follow the young people home and when he arrived at their subsidized homes, he realized the importance of trying to save the young people from violence, drug addiction, lack of self-worth, and incarceration — as well as their families from losing subsidized housing. Lambert and Wilson explained to the young men and women, ages 13-17, that there were positive options which might allow them to make money legally and stay out of jail. Wilson and Lambert decided to teach them how to wash cars and they opened a car wash in East Oakland. Oakland’s Initiative, “Keep the town clean,” involved the young people from Lu Lu’s House participating in more than eight cleanup sessions throughout Oakland. To assist with their infrastructure, Lu Lu’s House has partnered with Oakland’s Private Industry Council.

For the Christmas season, Lu Lu’s House and reformed young people (who were previously robbed) will continue to give back.

Lu Lu’s House traveled to Los Angeles and obtained more than 500 toys.

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Activism

Desmond Gumbs — Visionary Founder, Mentor, and Builder of Opportunity

Gumbs’ coaching and leadership journey spans from Bishop O’Dowd High School, Oakland High School, Stellar Prep High School. Over the decades, hundreds of his students have gone on to college, earning academic and athletic scholarships and developing life skills that extend well beyond sports.

Published

4 days ago

December 20, 2025

Oakland Post

NCAA football history was made this year when Head Coach from Mississippi Valley State, Terrell Buckley and Head Coach Desmond Gumbs both had starting kickers that were Women. This picture was taken after the game. Courtesy photo.

Special to the Post

For more than 25 years, Desmond Gumbs has been a cornerstone of Bay Area education and athletics — not simply as a coach, but as a mentor, founder, and architect of opportunity. While recent media narratives have focused narrowly on challenges, they fail to capture the far more important truth: Gumbs’ life’s work has been dedicated to building pathways to college, character, and long-term success for hundreds of young people.

A Career Defined by Impact

One of his most enduring contributions is his role as founder of Stellar Prep High School, a non-traditional, mission-driven institution created to serve students who needed additional structure, belief, and opportunity. Through Stellar Prep numerous students have advanced to college — many with scholarships — demonstrating Gumbs’ deep commitment to education as the foundation for athletic and personal success.

NCAA football history was made this year when Head Coach from
Mississippi Valley State, Terrell Buckley and Head Coach Desmond
Gumbs both had starting kickers that were women. This picture was
taken after the game.

A Personal Testament to the Mission: Addison Gumbs

Perhaps no example better reflects Desmond Gumbs’ philosophy than the journey of his son, Addison Gumbs. Addison became an Army All-American, one of the highest honors in high school football — and notably, the last Army All-Americans produced by the Bay Area, alongside Najee Harris.

Both young men went on to compete at the highest levels of college football — Addison Gumbs at the University of Oklahoma, and Najee Harris at the University of Alabama — representing the Bay Area on a national level.

Building Lincoln University Athletics From the Ground Up

In 2021, Gumbs accepted one of the most difficult challenges in college athletics: launching an entire athletics department at Lincoln University in Oakland from scratch. With no established infrastructure, limited facilities, and eventually the loss of key financial aid resources, he nonetheless built opportunities where none existed.

Under his leadership, Lincoln University introduced:

Football
Men’s and Women’s Basketball
Men’s and Women’s Soccer

Operating as an independent program with no capital and no conference safety net, Gumbs was forced to innovate — finding ways to sustain teams, schedule competition, and keep student-athletes enrolled and progressing toward degrees. The work was never about comfort; it was about access.

Voices That Reflect His Impact

Desmond Gumbs’ philosophy has been consistently reflected in his own published words:

“if you have an idea, you’re 75% there the remaining 25% is actually doing it.”
“This generation doesn’t respect the title — they respect the person.”
“Greatness is a habit, not a moment.”

Former players and community members have echoed similar sentiments in public commentary, crediting Gumbs with teaching them leadership, accountability, confidence, and belief in themselves — lessons that outlast any single season.

Context Matters More Than Headlines

Recent articles critical of Lincoln University athletics focus on logistical and financial hardships while ignoring the reality of building a new program with limited resources in one of the most expensive regions in the country. Such narratives are ultimately harmful and incomplete, failing to recognize the courage it takes to create opportunity instead of walking away when conditions are difficult.

The real story is not about early struggles — it is about vision, resilience, and service.

A Legacy That Endures

From founding Stellar PREP High School, to sending hundreds of students to college, to producing elite athletes like Addison Gumbs, to launching Lincoln University athletics, Desmond Gumbs’ legacy is one of belief in young people and relentless commitment to opportunity.

His work cannot be reduced to headlines or records. It lives on in degrees earned, scholarships secured, leaders developed, and futures changed — across the Bay Area and beyond.

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Activism

Black Arts Movement Business District Named New Cultural District in California

Located in the heart of District 3, the BAMBD is widely regarded as one of the nation’s most important centers of Black cultural production — a space where artists, entrepreneurs, organizers, and cultural workers have shaped generations of local and national identity. The state’s recognition affirms the district’s historic importance and its future promise.

Published

4 days ago

December 20, 2025

Oakland Post

Councilmember Carroll Fife celebrates major milestone for Black arts, culture, and economic power in Oakland. Courtesy photo.

By Post Staff

Oakland’s Black Arts Movement Business District (BAMBD) has been selected as one of California’s 10 new state-designated Cultural Districts, a distinction awarded by the California Arts Council (CAC), according to a media statement released by Councilmember Carroll Fife.

The BAMBD now joins 23 other districts across the state recognized for their deep cultural legacy, artistic excellence, and contributions to California’s creative economy.

“This designation is a testament to what Black Oakland has built — and what we continue to build when we insist on investing in our own cultural and economic power,” said Fife.

“For years, our community has fought for meaningful recognition and resources for the Black Arts Movement Business District,” she said. “This announcement validates that work and ensures that BAMBD receives the support it needs to grow, thrive, and continue shaping the cultural fabric of California.”

Since taking office, Fife has led and supported multiple initiatives that strengthened the groundwork for this achievement, including:

Restoring and protecting arts and cultural staffing within the City of Oakland.
Creating the West Oakland Community Fund to reinvest in historically excluded communities
Advancing a Black New Deal study to expand economic opportunity for Black Oakland
Ensuring racial equity impact analyses for development proposals, improving access for Black businesses and Black contractors
Introduced legislation and budget amendments that formalized, protected, and expanded the BAMBD

“These efforts weren’t abstract,” Fife said. “They were intentional, coordinated, and rooted in a belief that Black arts and Black businesses deserve deep, sustained public investment.”

As part of the Cultural District designation, BAMBD will receive:

$10,000 over two years
Dedicated technical assistance
Statewide marketing and branding support
Official designation from Jan. 1, 2026, through Dec. 31, 2030

This support will elevate the visibility of BAMBD’s artists, cultural organizations, small businesses, and legacy institutions, while helping attract new investment to the district.

“The BAMBD has always been more than a district,” Fife continued. “This recognition by the State of California gives us another tool in the fight to preserve Black culture, build Black economic power, and protect the families and institutions that make Oakland strong.”

For questions, contact Councilmember Carroll Fife at CFife@oaklandca.gov.