Kim LaSata: Addressing Unemployment Insurance Agency shortfalls

The Joint Legislative Oversight Committee, which includes members from both the Michigan House of Representatives and the state Senate, convened last week to continue its work investigating the shortfalls that left so many Michiganders in need during the coronavirus pandemic.

The significant failures of the state’s Unemployment Insurance Agency over the last few years are widely known. The joint committee has worked to get answers about the agency’s poor performance, security failures and lackluster customer service, especially after an audit outlined the scale of these mishaps. It was revealed that the UIA not only squandered billions in payout funds by not following federal guidelines and negligently allowing fraud to run rampant, but the agency also hired people with criminal records, including convictions for embezzlement and identity theft, to do a job that provides nearly unlimited access to applicants’ personal information.

Unfortunately, the ones who paid for the agency’s negligence were Michigan taxpayers.

The joint committee announced it would be filing subpoenas to bring former Director Steve Gray before the panel to answer questions the current director was unable to answer. The former director has long been criticized for his sudden departure from the agency — one that included a nearly $86,000 severance agreement approved by the Whitmer administration.

Members of the joint committee also spoke with current director, Julia Dale, to discuss the findings included in the audit.

Dale announced during the hearing that the UIA will be requiring criminal history checks on all employees, contractors, subcontractors and anyone who can access confidential information going forward. The agency also will be doing fingerprint checks. This is welcomed news for the many residents who have been affected by the UIA’s mismanagement.

The pandemic turned life upside-down for every resident of this state. However, the egregious errors that were made and then left uncorrected under UIA leadership are unconscionable. Residents were forced out of their jobs and many were then left in the dark for months while they awaited a response from the UIA — some of whom waited well into 2022 — nearly two years later. Several legislative offices, including my own, even took to dedicating staff and quick access forms on websites to help process the massive influx of UIA claims because people were unable to reach the office or access the UIA website.

Someone needs to answer these questions and be held accountable. Michigan residents deserve answers for the way they were cast aside when they needed it most. The Legislature is continuing to not only get to the bottom of this colossal failure, but to also ensure it never happens again, and that going forward, the UIA does the required due diligence Michiganders deserve and respect.

Sen. Kim LaSata, R-Niles, represents the 21st state Senate District, which includes all of Berrien, Cass, and St. Joseph counties.