Murder suspect Jason Michael Miller blabbed freely about how he shot Kiera Lynn Foley, dismembered her body and drowned her little dog in a toilet, witnesses testified during the first day of Miller’s preliminary hearing.

Two women testified Thursday that Miller told them about the murder. A third woman, Crystal Gonzales, said she was in Miller’s motel room when he showed her Foley’s body in the bathtub. Gonzales said a small dog was on Foley’s body, shivering, when Miller picked up the dog and drowned it in the toilet.

“Ha, ha, bubbles,” Gonzales recalled Miller saying.The dog’s name was Bubbles.

Miller.

Miller, 41, is charged with killing the 32-year-old Foley on or about April 15, 2021. According to one witness, Foley and Miller had been in a sexual relationship, but he began to suspect she was about to rob him. His solution, allegedly, was to shoot her, chop up her body and bury it. The body has never been found.

About a dozen of Foley’s friends and family members were in the courtroom during the gruesome testimony.

Rose Cooper, Miller’s former girlfriend, testified she had been living with Miller at the Laguna Inn in Eureka for about two weeks when he confessed.

Cooper, crying, testified she was taking a bath when Miller walked in and started talking.

“He only knew (Foley) for about two weeks,” Cooper testified under questioning by Deputy District Attorney Jessica Watson. Miller told her Foley lied to him a lot and he believed she was going to rob him.

Miller allegedly forced Foley into the motel room bathtub and “mentally tortured her,” Cooper said. One minute he would tell her she could go home, the next minute he’d say he was going to kill her. Cooper couldn’t recall whether Miller said the torture went on for four hours or four days.

“And then he walked in and shot her.”

“He said he bled her out and cut the body in pieces and that he killed her dog in the toilet — drowned it.”

According to Cooper, Miller said he forced Gonzales to help him, and he buried Foley “under a briar bush.”

For four days Miller kept going back to the burial site and digging, Cooper recalled. When he talked about that “he was laughing. He scared the shit out of me.”

Cooper also said that after Miller was arrested in June, she found a notebook in which he had written “No corpse, no crime.”

Under cross-examination by defense attorney Andrea Sullivan, Cooper said both she and Miller were using “heroin, speed and alcohol.” She stayed with Miller because he treated her so well, Cooper said. She had been working as a prostitute, and “he told all my tricks that I wouldn’t be out there anymore. Like I said, he was real good to me.”

She said Foley also was a prostitute. When Sullivan asked whether Foley ever went missing, Cooper said yes. Foley would disappear for months on end. Once she joined a carnival crew and was gone for six months.

Cooper said Gonzales helped cut up Foley’s body, and she kept the body in her car while Miller was digging the grave.

“She was driving around town with Kiera’s body,” Cooper said. “Driving around, doing errands, going to the store.”

Another witness, Phyllicia Korn, said she lived at the Laguna Inn and knew Miller.

“He was my dealer,” Korn said.

Korn recalled Miller coming to her door and telling her about killing Foley and the dog.

“He asked me if I wanted to see (the body) and I said no.”

“Did you believe him?” prosecutor Watson asked. Korn said yes.

“Just the look in his eyes,” she said. “Like there was nothing there. No soul.”

Korn is expected to continue testifying this morning.

As for Gonzales, her testimony was difficult to take seriously. She had a hard time staying awake and admitted she took a half-dose of methadone. Earlier in the day she was sleeping and softly snoring, with the bailiff threatening to kick her out of the courtroom.

She also acknowledged she has several mental disorders. Cooper testified Gonzales is one of two women in Eureka called “Crazy Crystal.”

“Believe it or not, there’s more than one out there,” Cooper said.

Gonzalez, under questioning by Deputy District Attorney Roger Rees, said Miller put a gun to her head and forced her to walk into the bathroom and view the bloody body and the little shivering dog. He told her “now you’re involved.”

She denied helping with the body, saying Miller told her he didn’t have to worry because “the mafia” or “the cartel” would take care of everything.

Sullivan, during her questioning of Gonzales, pointed out that in Miller’s motel room “there’s no physical evidence, no blood, no bullet hole, no sign of trauma whatsoever.”

She also pointed out that at one point, Gonzales searched the Internet for information on how to get rid of a body.

“I don’t believe that,” Gonzales said.

On Thursday Miller sat next to Sullivan in his orange jumpsuit. Need it be said that he looks nothing like his mugshot? Now he’s plump and wears glasses.

Judge Kaleb Cockrum is presiding over the hearing. Watson and Rees are co-prosecutors.

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PREVIOUSLY:

• Whitethorn Woman Arrested with Drugs
• MISSING: Humboldt Woman Disappears Under ‘Unknown Circumstances’
• MISSING: EPD Seeking Woman Last Seen in Eureka in April
• Already Incarcerated Suspect Arrested for Alleged Murder of Missing Woman Kiera Lynn Foley

Millions of Californians could lose or transition into new health coverage as two federal programs that helped many keep or afford insurance are set to expire this year.

Two to three million Californians could lose their Medi-Cal coverage, some as soon as this summer, after the federal government’s COVID-19 public health emergency ends, now scheduled for next month. In addition, 150,000 Californians might not be able to afford their Covered California health plans unless federal subsidies from the American Rescue Plan, which are set to expire at the end of this year, are renewed, according to a report released Wednesday.

The COVID-19 pandemic triggered investments and protections that increased the number of people with health insurance. In California, close to 14.5 million people are enrolled on Medi-Cal — the most ever — and a record 1.8 million people bought a health plan through Covered California during the latest sign-up period.

But those federal protections are temporary. And state health officials are now preparing for when they expire, examining how to keep the most Californians covered.

Medi-Cal and the public health emergency

Before the pandemic, people on Medi-Cal had to renew their coverage every year, but the process has been frozen for the past two years.

During the federal government’s public health emergency, states cannot drop people from Medicaid — known as Medi-Cal in California, the health insurance program for low-income people.

But the emergency is scheduled to expire after April 15 unless it is extended for another 90 days by the Biden administration.

An estimated two to three million Californians could lose Medi-Cal coverage because they now earn too much to qualify or they fail to provide information needed to stay on the program, health advocates explained.

While many people could transition from Medi-Cal to other types of insurance, advocates fear many could get lost in the administrative complexities and lose coverage.

Jacey Cooper, the state’s Medi-Cal director, said the state would have to begin the process of redetermining who is eligible in May if the emergency order ends in April. Because enrollees need a 60-day notice, people who are due to update their eligibility information in July would need renewal packages by May.

Federal guidance gives states 12 months to complete reviewing people’s eligibility.

For most adult enrollees, the limit to qualify for Medi-Cal is 138% of the federal poverty level, about $17,609 for single people and $36,156 for a family of four. Eligibility takes into account income and household size. (Certain groups like pregnant women qualify at slightly higher incomes.)

While many people could transition from Medi-Cal to other types of insurance, advocates fear many could get lost in the complexities and lose coverage.

Anthony Wright, executive director at Health Access, said people falling off Medi-Cal is not necessarily a bad thing — people’s incomes may have increased and now they are eligible for subsidized coverage on Covered California, or some may have regained employer benefits.

“Our hope is that this number (of 2 to 3 million) doesn’t reflect the number of people who will become uninsured, but rather the number of people leaving Medi-Cal, which could be for good reasons,” he said.

Still, people can get lost in the paperwork or simply never learn that they are supposed to submit a renewal application, said Monika Lee, associate communications director with the California Pan-Ethnic Health Network.

“We are expecting losses,” she said. “If the state mails something to your house and you don’t live there anymore, how will you know you are losing coverage?”

Cooper has a similar concern, noting that her department estimates that 7 to 10% of enrollees have changed their address during the past two years. “We need updated contact information so that when the public health emergency does end, we can reach and contact individuals,” she said. People can update their contact information at their county Medi-Cal office.

Cooper said her department will help people who no longer qualify for Medi-Cal transition into other types of coverage, whether it be employer-based insurance or a low-cost health plan through Covered California.

But Covered California also warns that a separate issue — an upcoming expiration of federal aid — could affect whether those formerly on Medi-Cal sign up or not.

Covered California and the federal subsidies

The federal government’s American Rescue Plan last year provided California with around $3 billion designated for additional financial aid through Covered California. As a result, more people signed up, and 24% of consumers enrolled in plans with monthly premiums of $10 or less, according to Covered California.

The enhanced federal subsidies are locked in for the rest of this year, but if Congress let’s it expire, enrollees would see their premiums go up next year. Covered California estimates that low-income Californians could see their monthly premiums double, from an average of $65 to $131. Middle-income enrollees would no longer receive financial help.

Covered California estimates that low-income Californians could see their monthly premiums double, from an average of $65 to $131.

About 150,000 people could be forced to drop their plan because they could no longer afford it, according to the Covered California report.

People across the country, “without the expansion of the American Rescue Plan subsidies (will) face a sticker shock that will mean coverage is not within reach for them. Many of those are likely to be from communities of color,” said Peter V. Lee, executive director of Covered California.

Covered California’s report shows significant enrollment gains among these communities, including a 33% boost in enrollment among African Americans this year compared to 2020.

California in 2020 became the first state in the nation to offer aid to middle-income residents who previously earned too much to benefit from federal subsidies. But the increased help provided by the federal government was bigger, and it replaced state aid.

“There is no hard deadline for when the federal government needs to act, but the sooner the better,” Lee said.

That’s because the state usually announces the rates it negotiates with insurance companies for the following year sometime around July, and by October people start getting renewal notices with an estimate of their new costs. Lee said insurers could decide to raise premiums if they expect fewer people to sign up.

“There is no hard deadline for when the federal government needs to act, but the sooner the better.”
— Peter V. Lee, executive director of Covered California

“It’s not just fewer people, it’ll be fewer healthier people,” Lee said.

If the increased assistance goes away, healthy people will be among the first to drop their coverage, Lee said. And the sicker the pool of enrollees, the higher the premiums for everyone.

The good news, Wright said, is that Congress does have incentive to act and renew this help. “It would be in no one’s interest for premium spikes to be announced in September or October of an election year,” he said.

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CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.

Gov. Gavin Newsom yesterday unveiled a much anticipated proposal to address a mental health crisis increasingly visible on trash-strewn sidewalks and in cramped jail cells around California.

The proposal, known as the Community Assistance, Recovery and Empowerment (or CARE) Court, would provide a framework for courts to compel people with serious mental illnesses and substance use disorders into treatment, while also providing participants with supportive housing and wrap-around services.

“This is a completely new strategy,” Newsom said at a press conference to introduce the new plan. “And I hope that creates a space for a different conversation than we’ve had in the past.”

All 58 counties would be required to participate in the program, which is currently just a policy framework and still needs to be approved by the Legislature. Counties could face penalties for failing to provide requisite services, administration officials said.

“This is a completely new strategy. And I hope that creates a space for a different conversation than we’ve had in the past.”
— Gov. Gavin Newsom

That’s one of several details that differentiates this proposal from Laura’s Law, which also entails court-ordered treatment but allows counties to decide whether they want to participate. Newsom noted that, in one year, only 218 people were served by Laura’s Law. The Newsom administration estimates that the CARE Court program could serve between 7,000 and 12,000 Californians.

Administration officials say the new proposal is different, in part, because of the resources it comes with. It builds on a $12 billion allocation to address homelessness last year, as well as another $2 billion proposed this year, they said.

People could come into the program through short-term involuntary hospital stays (also known as “5150s,” through the criminal justice system or at the recommendation of family members, mental health providers or first responders, among others. They would not need to be homeless to participate.

The court would order a tailored plan involving some combination of housing, medication and services, and would offer the support of a full clinical team, as well as a public defender and a “supporter” who could help a participant make care decisions and prepare advanced mental health directives.

Unlike with conservatorships, which can be indefinite, participation would be time limited – one year, with the possibility of an additional one-year extension.

A stream of state and local leaders spoke to the urgency of the need at the news conference, held on the San Jose campus of Momentum for Health, a behavioral health treatment organization.

Santa Clara County Superior Court Judge Stephen Manley, a widely regarded trailblazer who has presided over that county’s mental health court for decades, told those gathered: “We need to stop trying to fix a failed system that is rapidly, in my view, from what I see every day, moving us back to where we were 100 years ago when the answer for the mentally ill was simply to incarcerate them, put them in the hospital and keep them there until they die.”

Oakland Mayor Libby Schaaf, whose city has seen a dramatic burgeoning of encampments in its parks, vacant lots and underpasses, described joining the city’s homeless count on a recent freezing morning. She lost her composure as she shooed a rat off of a sleeping woman, she said. She later learned that the woman had spent three years living in that same spot, feeding rats because they were her “chosen company” and refusing services.

“She had been offered care, shelter, housing countless times but had been left to freeze on the pavement of our city,” Schaaf said.

“It’s time that our Golden State stops walking by our greatest moral shame and faces it head-on with clarity and compassion,” she said.

“It’s time that our Golden State stops walking by our greatest moral shame and faces it head-on with clarity and compassion.”
— Oakland Mayor Libby Schaaf

With the new proposal, state leaders are trying to forge a new path beyond the decades-long stalemate surrounding involuntary treatment of the most seriously mentaly ill.

Dr. Mark Ghaly, the secretary of Health and Human Services, described the need to move beyond “old and broken models.” The Lanterman-Petris-Short Act, which established the standards for involuntary treatment for people with disabilities, passed in 1967, more than half a century ago. In recent years, much of the debate about how to serve people with serious mental illness has centered on whether or not to change that law. Bills moving through the Legislature are still grappling with that question.

Newsom took care to emphasize his interest in working with disability rights groups on the new proposal.

Kevin Baker, director of governmental relations for ACLU California Action, said in an email to CalMatters that his organization is “keeping an open mind” while waiting to see more details, though noting that “there are a million questions and a million things that could go wrong.”

“The problem of homelessness is caused by the cost of housing, and we won’t solve homelessness, mental health or substance abuse problems in our communities by locking people up and drugging them against their will,” he said. “New funding for housing and services would be good, if we also keep in mind that people don’t lose their civil liberties just because the government wants to help them, no matter how sincerely.”

He added that he thought the proposal is a significant and complex change in the law that should be heard by legislative committees and “not quietly slipped into a budget trailer bill as I hear may be the plan.”

County behavioral health departments would shoulder significant responsibility for implementing the new plan. Michelle Doty Cabrera, executive director of the California Behavioral Health Directors Association, told CalMatters that her members are all too aware of the “runaway train of need” for mental health services. While celebrating Newsom’s commitment to bring in more funding for housing, she said she worried that the administration was not planning to allocate enough resources for increased services.

“There’s no way you can squeeze blood from a turnip,” she said. “We’re at our limit in terms of what we can do. We need more resources to do more.”

The California State Association of Public Administrators, Public Guardians, and Public Conservators echoed this sentiment in a similar statement, saying they needed more resources to meet the “significant impacts” the program would undoubtedly have on demand for their services.

“The governor has thrown down the gauntlet and said we’re going to change things in a big way.”
— Randall Hagar, legislative advocate and policy consultant for the Psychiatric Physicians Alliance of California

Randall Hagar, legislative advocate and policy consultant for the Psychiatric Physicians Alliance of California, called the new proposal “really welcome.”“The governor has thrown down the gauntlet and said we’re going to change things in a big way,” he said. “It’s one of the first new ideas I’ve heard in a long time.”

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CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.

Louise Wilson entered Heaven on February 25, 2022 at the age of 95. Louise was born to Jack and Myrtle Lee Salsman on June 30, 1926 in Richland, Missouri. It was there that she met the love of her life, Paul Wilson, and they were married in Belton, Texas in 1940 shortly after he joined the service. In 1946 they moved back to Missouri, having their first son in 1948 followed by twins in 1950. Paul then came out to California after his brother and two of Louise’s sisters had moved here to start a career and a life on the West Coast. Louise soon followed with her mother and their children in tow.

Louise wholeheartedly embraced the role of wife and mother, having three more children after settling in Eureka, losing her son Kevin before birth — a loss she would carry with her every day.

As Paul went to work to support his family, Louise dedicated her life to raising her children. Her heart was full of love for babies, as she was a caregiver in the nursery at their church and as her kids got a little older she became a caregiver for many children over the years, providing childcare for working mothers. Those children were loved as her own. She did this for many years and continued as her grandchildren came and joined in with the neighborhood kids she was taking care of. Her door was always open and full of laughter and love.

As years passed by, children grew. Her caretaker role was then filled with the needs of her mother and then Paul. Once he retired they were able to travel, going back to Missouri to visit the family they had left and to look back on where they started. They loved and organized family picnics at Richardson’s Grove and hosted large family gatherings at their home. They were happiest when their family gathered and whether it was laughter from stories or hooting at a game on TV. They were surrounded by who they loved the most. The babies of the family, more often then not, would be found snuggled on Louise’s lap. She was the best Nana. Louise absolutely loved getting together with her sisters, whether they were playing cards, sharing a meal, shopping with them and her daughters… Then grandchildren joined the fun.

Paul and Louise were married 67 years and then he was called home. After years of taking care of him as he had became frail, she was lost. The love, the true love and commitment the two of them shared was admired by so many. They took care of each other. They were best friends and set an example to everyone of what commitment and unconditional love really is. Louise continued for 13 years without him, missing him every day and wishing she could see him “just once.” We know he was in Heaven and there to greet her when she arrived. All she wanted was to see him, her mother, her baby boy and all six of her siblings – as being the youngest, she was the last to join them. We know they are all together now and although we will miss her dearly, we know she is safe, healthy, loved and happy. We couldn’t ask for more than that.

Louise was preceded in death by her husband Paul, her parents, siblings and her little baby boy Kevin. It had been over 50 years and she still spoke of him and made sure his little grave was visited and he was remembered. She is also preceded in death by her daughter-in-law Margaret Wilson and her son-in-law Duane McKay.

She is survived by the ones she loved with her whole heart: Children: Paul Wilson (Vicki) Ron Wilson (Lynn) Connie McKay, Doug Wilson, Kelly Ward (Rodney) … Rodney … who always put a sparkle in her eye and made a smile appear — not a son-in-law, but a son. Grandchildren: Mike Marcelli (Charity), Angela Gibson, Brad Gibson, Shane DePute (Tiffany) Sasha Africa (Bret) Ryan Wilson (Estelle) Steve Wilson, LeAnne Ives, Alicia Toroni. Great Grandchildren: Lacey Yates (Chad), Kody and Katie Marcelli, Capri and Aria Africa, Kaden, Kinsley and Carson DePute, Rebekah, Caleb, Jeremiah and Isaiah Ives and Kayla Wilson… and Maxine Wilson, who will be arriving this month. Great-great-grandson Kareem.   

Funeral services for Louise will be held Saturday March 5, 11 a.m. at Sanders Funeral Home in Eureka with graveside services to follow at Oceanview Cemetery. There will be no reception. Sanders Funeral Home requires masks.   

We would like to thank everyone for their outpouring of love and support, and the staff at Granada for making Louise comfortable and for taking such good care of her during her short stay. We are grateful.

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Edna Johnson passed away at the age of 98 on February 25, 2022 at 3:49 p.m. in her home in Hydesville. She was born on Nov 18, 1923, in Phillips Co., Kansas.

She is survived by her brother, William George Barg, Jr, who lives in MacClenny, Florida, grandson Gerald Randall Johnson who lives in Carlotta, her granddaughter in-law, Linda Wilkinson who lives in Fortuna, great-granddaughter Jennifer Johnson, great-great granddaughter Kylee Lexus Carter, her nephews: Jimmie Nash, Robert Barg, George Barg, nieces: Colleen Hartman, Arliss Nash Morgan, Vicki Barg, Judith Barg, and many others. She was preceded in death by her husband, Lloyd M. Johnson, her sister Evelyn Barg, her father, William George Barg, Sr., her mother, Susanna Rosina Howard, her son Gerald L aka ‘Pete’ ‘Jake’ Johnson, and a lot of other family and friends.

Edna was born and raised in Phillips Co., Kansas on a 300-acre farm. She and her siblings had to wear bandanas over their face during the dust bowl days as well as walk to school through snow and freezing cold temps. Edna was one tough woman and was not afraid of work and was a hard worker. She made bombs and ammo at Naval Ammunition Depot in Hastings, Nebraska during World War II, she drove a semi, and later she worked at the Coast oyster plant. Her husband was a contractor, so she traveled to various jobs with him and helped him with his bookkeeping.

She moved to Eureka in Humboldt County in about 1956 with her husband Lloyd. They lived in Carlotta for many years. They had burros out there. Later they moved to Hydesville and lived there around 20 years. Her sister died of polio, so she helped raise her three children, Jimmie Nash, Colleen Hartman and Arliss Morgan. She helped support her grandson, Gerald R. Johnson.

One story I remember her telling me was: Edna didn’t care for live fowl, as she got attacked by a rooster when she was a young child. A truck full of live turkeys stalled on the highway in Kansas. The driver gave one live turkey to her husband, who put it in the cab of the truck with them. It scared her, so she made him stop and get it out of the cab and put it in the back.

She had a big, beautiful walnut tree and would gather the nuts, clean them an distribute them to family and neighbors, as well as pears. She was an excellent cook, and her recipes were considered gold by the family. She canned fruits and vegetables every year. She washed her dishes by hand and used the dishwasher for her canning jars. She helped her husband design the remodel of their home in Hydesville.

I remember her preparing enough food to feed a 100 people for her 90th birthday party. She had 75 people attend. She was great at gardeningvegetables and flowers; she took pride in her yard looking nice. She crocheted beautiful full-size afghans, smaller ones for children, and beautiful doilies. She loved to dance, and her and her husband use to go dancing about every weekend. She was extremely independent, was able to drive, take care of herself, and conduct business right up until she was hospitalized before passing.

She really wanted to live to 100 and always told me to live long, so I was the only one I knew.

A memorial service will be held at a later date.

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Betty Jean Morris passed away peacefully in her bed on Monday, February 28, 2022. She was 92.

She was born to Archie and Lottie Winters in Healdsburg in 1929, the youngest of their 12 children. Both of her parents passed away while she was still in grade school, so different ones of her sisters took her in until she finished school. She ended up in Lakeport where she met and fell in love with John S. Morris. They were married in 1947. They lived in Lakeport for a few years, then moved to Ukiah, and finally to Eureka in 1965.

She and John were long-time members of First Covenant Church, Eureka. Betty was active in the Women’s ministry. She loved to sew and enjoyed helping some of the young girls of the church to learn as well. She was an avid gardener, and when she had to be inside, she could often be found knitting.

When John retired in 1981, they went to Peru, where their daughter and son-in-law worked, and spent six months as guest helpers with Wycliffe Bible Translators.

She is survived by her daughter Judy (& David) Payne of Tyler, Texas, and her son Bill (& Allison) Morris of Eureka; five grandchildren: John (& Laura) Morris, Rebecca Morris, Nathan (& Katy) Payne, Jacob (& Tatiana) Payne and Adam (& Katie) Payne; plus nine delightful great-grandchildren.

Because of her love for children, in lieu of flowers, the family requests donations be made to Triumphant Life Camp, through First Covenant Church of Eureka.

Memorial service to be held at First Covenant Church of Eureka on March 18 at 10 a.m.

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Last week’s “final notice” letter from the California Attorney General’s Office, which threatens legal action against embattled Humboldt County Auditor-Controller Karen Paz Dominguez for her failure to submit a long-overdue financial transactions report, was not sent in error, as she suggested publicly this week.

The A.G.’s Office confirmed as much Thursday in an email to Paz Dominguez, saying a pending report from the State Controller’s Office “does not relieve the County of any reporting responsibilities including filing a timely Financial Transactions Report (FTR) and completing the annual single audit by the required due dates.”

The State Controller’s Office offered a similar clarification on Wednesday, confirming to the Outpost that the A.G.’s “final notice” letter was not issued because of some automated system but was indeed sent at the request of the state controller.

This is all rather convoluted, so let’s back up a bit.

In early December, State Controller Betty Yee notified the county that she’d be sending in a team from her office’s Division of Audits to investigate the county’s financial practices and reporting. (You can read her letter here.)

“The basis for the investigation is the county’s failure to file its Financial Transactions Report (FTR) for fiscal year (FY) 2019-20,” Yee’s letter said. That report, which is a state-mandated responsibility of the Auditor-Controller’s Office, is now more than a year past due. 

So Yee’s investigation team came in and investigated, conducting interviews, assessing the county’s internal controls and examining its overall financial reporting processes. However, the team has yet to issue its report. 

Cut to this past Friday. That’s when Paz Dominguez received the “final notice” from Deputy Attorney General Julianne Mossler. It reminds Paz Dominguez that the state has made several attempts over the past year to compel her to submit the report, saying she could even use unaudited information if necessary, just as long as she finally turns it in.  

Mossler’s letter tells Paz Dominguez that she has until March 16 to submit the Financial Transactions Report or else the state will pursue legal action against her (and/or against the county), including a $5,000 fine.

At Tuesday’s Board of Supervisors meeting, Paz Dominguez suggested that Mossler’s letter was sent by mistake — or perhaps as the result of some automated notification system.

Addressing the board, Paz Dominguez said she appreciated the opportunity to “clear up some misconceptions” given that she had recently spoken with representatives from the State Controller’s Office about the letter. 

“It came as a surprise to the State Controller’s Office team that is working with our county that the Attorney General sent that letter,” Paz Dominguez said. “They were going to communicate with people at the Attorney General’s Office, and what they could communicate with me yesterday was that they think that maybe it’s probably because we were on a list and the Attorney General has a schedule that they check, and a calendar, and that because we were still on that list by that date, they chose to write that letter.”

The county has engaged outside auditing firm CliftonLarsonAllen to complete the long-overdue 2019-20 Financial Transactions Report. Representatives from that firm have given a target completion date of March 31 — two weeks beyond the new deadline imposed by the state.

But Paz Dominguez says she’s been under the impression that she should wait for the State Controller’s Office to issue its investigation report before completing the overdue document. The State Controller’s Office may want to send in its own accountant to complete the necessary work.

She reiterated this perspective on Tuesday, telling the board, “when the State Controller’s Office [representative] wrote her letter to the county … she said it would be upon her findings that she would determine whether she would appoint an accountant to come and complete the Financial Transactions Report.”

Back in December, Paz Dominguez said she was “thrilled” by that possibility — she would welcome any and all help from the State Controller’s Office. 

However, in reading Yee’s letter, it’s not clear whether she’s offering help or simply stating that she may have to resort to sending in a competent professional to fix the county’s financial mess.

“The results of this investigation will assist my office in determining if I need to appoint a qualified accountant to obtain financial information required to be reported to my office in accordance with [Government Code] section 53891,” the letter states.

On Tuesday, Paz Dominguez told the Board of Supervisors that the State Controller’s Office is still drafting its report, “so it does seem a little bit out of the timeline for the Attorney General to be demanding this [Financial Transactions Report]. Either way,” she continued, “I am still waiting for a response from the deputy attorney general who emailed that letter, and I have not yet received one.”

First District Supervisor Rex Bohn asked for clarification: Was she saying that the Attorney General’s letter was sent in error?

“Given what I have heard from the State Controller’s Office directly? Yes,” she said. “That is what I think has happened.”

Here’s video of Tuesday’s meeting, queued up to that exchange:

Mossler’s follow-up email, sent today, makes it clear that the notice was not sent in error. She confirms that the State Controller’s Office’s review of the county’s financial reporting practices is still in progress, saying the final results will be shared in an exit conference “when appropriate.”

But that has no bearing on the state’s imposed deadline. 

“The internal control system review does not relieve the County of any reporting responsibilities,” Mossler says, “including filing a timely Financial Transactions Report (FTR) and completing the annual single audit by the required due dates.”

Not only is the county’s 2019-20 Financial Transactions Report overdue, but the report covering the next fiscal year, 2020-21, was due by Jan. 31. Mossler tells Paz Dominguez that instructions for submitting those reports “remain the same as has been included in previous letters from [the State Controller’s Office],” but, perhaps in an attempt to be helpful, she attached a 43-page user guide for local government reporting along with a list of answers to frequently asked questions.

We reached out to Paz Dominguez to ask whether, in light of Mossler’s latest correspondence, she believes the 2019/20 Financial Transactions Report will get submitted to the state by the March 16 deadline.

Initially she said her schedule for today was jam-packed, so she wouldn’t be able to dig deep into the letter until this evening. But shortly thereafter she sent a follow-up email, saying:

I had a quick break between meetings so I provided a response to Ms. Mossler [saying] that I would review her request with county counsel as it didn’t align with what we discussed with the SCO [State Controller’s Office]. I’ll likely meet with my county counsel liaison early tomorrow and will know more then. Oh, how I wish I could clone myself and be in two places at once…

Still no word on whether she’ll be able to submit the overdue report before the March 16 deadline.