Ohio auditor: Ohio's unemployment system is 'outdated,' 'overwhelmed'
An Ohio auditor found Ohio's unemployment system is in major need of improvements.
The state's unemployment system recently underwent a performance audit that was required by the Ohio General Assembly after receiving numerous customer service complaints during the COVID-19 pandemic.
Auditor of State Keith Faber's office released the first of two audits Thursday that highlighted changes that need to be made.
The state's unemployment system became flooded with new claims in 2020, as the federal government was receiving claims and extending benefits to people that it typically wasn't before the pandemic. That state then implemented a secondary system to process those claims, which the auditor said strained their resources even further.
The auditor said he met with dozens of Ohioans who had complaints regarding Ohio's unemployment system — whether that be long wait times, calls being disconnected, inability to obtain benefits, fraudulent claims and more.
State lawmakers also became frustrated with Ohio's unemployment system and asked that the performance audit take a look at administrative funding, claims processing, staffing, customer service and technology systems.
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The performance audit found that "Ohio spends more state revenue on unemployment compensation administration than any other peer state." Ohio spent around $26.4 million of state revenue on unemployment compensation administrative expenses between 2017 and 2019.
The performance audit also found several customer service and system failures. The auditor noticed the department has multiple platforms where people could submit a complaint or inquiry, however, the systems were "largely disconnected" and did not have a way to track complaints across platforms.
The auditor suggested a way to fix this system failure is to have an integrated customer management approach to "ensure staff across various divisions have access to the most current customer information and avoid duplication of effort."
Another flaw found by the auditor was that the current system does not allow an applicant to easily see the status of a claim. The auditor suggested the department increase transparency and information visible to applicants on its website, including allowing the applicant to see date estimates for when applications are approved and when issues are generated during its processing. Doing so will reduce the number of calls to the contact center, the auditor stated.
The auditor found Ohio failed to meet the federal benchmark and lagged peer states in first payment timeliness.
"This was due in part to an antiquated system more than two decades old that was not capable of handling the volume of claims being submitted during the pandemic," the auditor said.
According to the auditor, only one employee was responsible for converting Ohio data into the format required by the federal government after receiving a large amount of federal dollars. The auditor said the department should "develop and document a formal process and review it routinely to maximize federal grant funding."
A bill required the department to create a strategic staffing plan, however, the auditor feels the state's plan lacked specificity in how to obtain and deploy additional resources in response to an increase of unemployment claims. The auditor said the department should collect data regarding how individual time is spent so staffing changes can be made when appropriate, such as during a global pandemic.
Many findings in the performance audit are a result of an "outdated and overwhelmed system," according to the auditor, which he said is not unique to Ohio, but added he feels Ohioans should have a reliable state system to provide for their needs.
"Ohioans deserve systems that work- systems that provide the services they pay for in every pay check and it is unacceptable that when the process is stressed, they are the ones that suffer. Hard-working Ohioans, put out of work through no fault of their own, have been subjected to an exhausting process that leaves them waiting hours, days, weeks and even months for the assistance they desperately need and have rightly earned," Faber said. "It's time to fix this mess and provide Ohioans with an unemployment system that is responsive to their needs and secure against the crooks that exploit its weaknesses."