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Tracking Compton's corrective action on state findings
In October 2022, the California State Auditor placed Compton on the state's high-risk list after Report 2021-802 found significant financial mismanagement. The city submitted corrective action plans in April and July 2023, but failed to submit the required December 2025 plan. A follow-up report in October 2025 confirmed Compton remains the only California city on the high-risk list.
Only California city on the high-risk list
Propose city charter amendments for the next statewide general election to prioritize an open, competitive hiring process for all positions — especially city manager, city controller, HR director, and budget officer. Develop detailed job qualifications for the city manager position.
Compton ranked most at-risk city in California
The State Auditor's Local High-Risk Dashboard ranks Compton as the most financially at-risk city in California, a designation it would hold continuously.
Report 2021-802 published
Acting State Auditor Michael S. Tilden finds that financial mismanagement and a lack of leadership have threatened Compton's ability to serve the public. Compton is designated high-risk with 18 prescriptive recommendations.
First Corrective Action Plan submitted
Compton submits its initial corrective action plan addressing the 2021-802 findings.
Updated Corrective Action Plan submitted
Source: California State Auditor, Reports 2021-802 and 2025-801
Amend the municipal code or personnel rules to formalize the key responsibilities of the human resources department and its director, including: salary surveys every 3 years, maintaining job specifications, documented recruiting plans, labor negotiations, recruitment assessments, succession planning, and documented procedures.
Require the city manager to submit a report to the council at least annually describing the human resources department's progress in meeting its objectives and minimizing ongoing staff vacancies.
Direct the city manager to fully staff the human resources department and the city controller's office with qualified individuals to address Compton's chronic staffing and finance issues.
Develop and approve a fiscal sustainability plan with specific measures for increasing revenues, decreasing expenditures, and eliminating fund deficits. Identify responsible individuals, completion dates, and estimated fiscal impact. Report progress quarterly.
Develop and approve an updated capital improvement plan prioritizing streets, water, and sewer projects. Include estimated costs, funding sources, and consideration of unspent revenue and existing fund balances (Measure P, water fund). Update at least every three years.
Complete and approve an updated cost allocation plan. Ensure the FY 2023-24 budget and subsequent budgets incorporate the results — including accurate transfer amounts from the water fund to the general fund.
Adopt budgeting policies following Government Finance Officers Association best practices: solicit public input before the budget process, ensure budget documents are clear and comprehensible, and monitor budget-to-actual spending.
Implement a robust orientation and ongoing training program for council members covering budgeting, finances, and the council's role in overseeing city operations.
Establish a central purchasing office and hire or formally designate a procurement officer to oversee the city's purchases and contracting, including maintaining all necessary documentation.
Create a comprehensive citywide purchasing manual with updated standards and policies regarding purchasing and contracting to replace the severely outdated 1997 policy.
Develop and approve an updated master sewer study identifying infrastructure and maintenance needs. The previous study dates to 2008, and Compton has experienced more than 40 sewage overflows in 15 years.
Evaluate and approve updated charges for all city services in accordance with the state constitution. Water charges have not increased since 2014, and sewer charges have not been updated since at least 2009. Review at least every three years.
Approve a realistic repayment plan for the nearly $29 million the general fund has borrowed from other funds — particularly the water fund ($13.6M) and sewer fund ($7.8M) — with repayments beginning by FY 2024-25.
Ensure the city issues audited financial statements for FY 2020-21 through 2022-23, and adopt a requirement that future statements be issued within six months of fiscal year end. Consider increasing controller's office staff.
Develop and begin implementing a plan for reducing pension and other postemployment benefits (OPEB) costs and liabilities, including placing retirement funds into a trust and negotiating employee contributions.
Resolve all audit findings predating the FY 2020-21 audited financial statements and any findings from subsequent reports, including those related to improving financial controls.
Develop a policy describing how the city determines the amount of fire department overtime to budget each year, and perform an analysis comparing overtime costs to the cost of hiring additional firefighters.
Compton submits an updated CAP with progress on several recommendations.