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Financial scandal in the California National Guard

The national conversation this week has been largely about money — on both the state and national level. Our elected leaders are trying to balance their budgets and still provide basic services.

And while Wisconsin has got most of the media attention, other governors are making equally drastic decisions. We’ve seen governors propose massive cuts in education and Medicaid and refuse billions of federal dollars for transportation projects.

Against this backdrop, Need to Know brings you a Watch List investigation that may be especially galling to taxpayers everywhere. It involves alleged financial misconduct in the California National Guard. Several months ago, the Sacramento Bee detailed how millions of federal tax dollars may have been improperly paid out to members of the Guard.

Since the 9/11 attacks, California Guard soldiers and airmen have accounted for more than 26,000 overseas deployments. And about 1,000 are currently serving in Iraq and Afghanistan. They perform vital services at war and at home. But hundreds of members may be ordered to pay back bonuses or other funds for which they were not entitled. Correspondent John Larson reports.