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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
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.
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.
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
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.
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.
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.
Compton submits an updated CAP with progress on several recommendations.