A bipartisan group of legislators met this week to continue crafting recommendations for improving Kentucky’s troubled unemployment insurance program. Testimony included a FY 2020 audit that detailed numerous issues within the Office of Unemployment Insurance, with problems ranging from hundreds of thousands of unread emails to poor security.
Gov. Andy Beshear has placed some blame on lawmakers or past administrations that allowed cuts to the state’s unemployment insurance staffing, but has admitted there are things his administration could have done better.
While many claimants were eventually able to resolve issues, there are still a number of individuals statewide facing challenges when applying for benefits. One of the more common problems reported has been struggling to speak with unemployment personnel or schedule an in-person meeting.
In February, Owensboro Mayor Tom Watson and Judge-Executive Al Mattingly co-authored a Letter to the Editor on behalf of local residents.
“There are many folks still suffering while waiting on their much-needed benefits, and each one is pleading for help,” the letter reads. “We are not pointing fingers at anyone or any agency, but as elected officials we hear the desperation in the voices of the folks needing some hope and some help.”
Noting the state audit that detailed the numerous issues, Watson and Mattingly said the solution was out of the hands of local government so they implored those at the state level to come up with a solution.
That audit was also referenced in this week’s meeting by the Unemployment Insurance Reform Task Force.
“This audit reveals the systemic failure of leadership in the unemployment insurance office,” Task Force Co-Chair Russell Webber (R) said. “Staff disregarded federal regulations and office policy, disregarding the needs of many Kentuckians as well as the integrity of the unemployment insurance system.”
According to the audit, in addition to more 400,000 unanswered emails and data breaches, unemployment insurance leadership wrongly implemented auto pay.
“This situation was almost entirely avoidable if staff had adhered to their own policies,” said Representative Phillip Pratt (R). “As we look to replace the outdated unemployment insurance system that has been used as a scapegoat to the office’s misgivings, we would be remiss not to recognize the intentional lack of leadership.”
In the 2021 session, legislators attached provisions to SB 146 to require regional public employment offices to open when an area’s unemployment is above five percent for the preceding six-month period. Despite this, constituents across the state struggled to make in-person appointments.
The recommendations crafted as a result of the work group will be submitted by Dec. 2 to be considered during the 2022 legislative session.
“Every member of this task force has constituents that have yet to receive unemployment payments,” Webber said. “As we make recommendations for ways to improve the unemployment system, it is paramount that we are able to place real Kentuckians on the face of the unemployment insurance debacle.”
