Why are employers being forced to pay off California’s defaulted loans?

Can you connect the dots, how is this making the numbers look good? The shortfall would either be paid by the state, businesses, or the federal government. In every case, those are just citizens paying that money, one way or another.

Out of the options, it doesn’t seem right to make the federal pay it - that would make non Californians pay their debt.

So it’s either business owners or comes out of the taxes of ordinary citizens. I’m agnostic as to whom pays, but considering the businesses received those funds, that doesn’t seem less reasonable than making the citizens pay.

What am I missing?

The FRANCHISE TAX BOAAARRRD

There was a lot of fraud done by businesses with these loans, so maybe they already profited and this is a clawback? But an unfair one to non-fraudulent businesses…