TOPEKA, Kan. (WIBW) - The Kansas Dept. of Labor says it will continue working to pay all unemployment claims due - and earn back people’s trust.
“Speaking very bluntly, it’s challenging,” Deputy Secretary for the Kansas Dept. of Labor Peter Brady told 13 NEWS in an interview Thursday.
Brady says he knows people are frustrated by an unemployment system hampered by delays and fraud. KDOL says it paid $290 million in fake unemployment benefits last year. A legislative post audit report put the figure at $600 million.
Brady says that’s because they factored in fake claims - that never had money paid.
“I do know we provided the data before this audit. I also know LPA was on a tight timeline to get this first question answered,” Brady said.
An LPA representative confirmed it did receive more detailed information from KDOL, but not in time to include it in their report released Wednesday. A second phase of the study is underway, which will further study the issue. LPA expects to release it in June.
Brady says KDOL continues working with LPA. Regardless of the figure, he says individuals and businesses won’t have to foot the bill for it.
“If you as an individual were a victim of ID fraud, we will do everything we can to make you whole, to reconcile that. If you are a business and there was a fraudulent claim against your business, we will make sure you’re not charged for that claims as being part of this tax year,” he said.
Still, the LPA report noted the balance of the state’s unemployment trust fund dropped 75 percent last year. Brady said the fund would be stressed, even without the fraud, because of the dramatic increase in legitimate claims. He noted 37 states already have had to borrow to keep their unemployment funds solvent. He said KDOL and lawmakers will have to work together to find a way to replenish the fund, without causing undue hardship.
Visit KDOL’s frequently asked questions page
KDOL implemented new software in January to fight the fraud, but the agency says it’s entire system is hampered by outdated technology. Brady said it is an issue they began studying in 2019, with site visits to other states and gathering information.
“When the pandemic struck and we saw the influx of claims, we did have to pivot to ensure that we addressed that,” he said.
Brady says, by fall, KDOL re-launched studies to determine what a new system will need. They plan to put out a request for proposals from vendors this spring. But it will still be the end of the year before they accept a bid, and 2022 before they can begin to install and transition to a new system. He said it may sound slow, but the state must use caution so they don’t cause further issues.
“We have one shot at this,” he said. “We don’t want to go into a modernization effort, then realize we made a critical mistake in the planning phase.”
Meantime, the current system continues to have a backlog of 12,706 claims in the new federal PUA program, down from 25,000 in November. Plus, there was a six-week gap between federal CARES Act programs - like PUA and extended unemployment benefits - being reauthorized, and getting the guidance to begin paying them. Many of those federal programs are up for re-authorization in the next relief bill, but brady says they’re hopeful the U.S. Labor Dept. will issue guidance more quickly this time, so they avoid a long gap in issuing payments.
Brady also acknowledged lingering frustrations with KDOL’s call center. He said KDOL is seeing increased issues with auto dialers. Monday, Feb. 22, 41 callers using auto dialers made 33,851 calls. The next day, 54 callers were responsible for 43,588 calls. Brady says auto dialers cannot connect, and simply create a clog.
“They’re all hitting the system. They’re hitting at the same time, and it just makes it more challenging for legitimate claimants to connect,” he said.
He says suggests people spread calls throughout the day, for the best chance of hitting a down time. KDOL also notes the busiest call times are 8 to 9 a.m. and 1 to 2 p.m. daily, with the highest call volume Monday, and the lowest Friday. The agency also is hiring 100 more call center reps to the 450 already on duty, and adding online resources.
“We’re going to keep working at it, day in and day out, and hopefully as we do that, we continue to build back trust,” he said.
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KDOL official addresses continued unemployment issues - WIBW
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