Staff Reports
The State of North Carolina is coming under scrutiny for its handling of $14 billion in unemployment benefits during the pandemic. State Auditor Beth Wood addressed the Oversight Committee in the House of Representatives and pointed out the lack of preparedness by the Division of Employment Security. Wood expressed her disappointment, stating that she expected the division to be more ready.
Unemployment benefits problems had nine-year pattern before pandemichttps://t.co/ZVCDdR7GAL
— The Center Square (@thecentersquare) November 2, 2023
One of the main issues discussed was the accuracy and timeliness of unemployment payments. Federal law requires that 87% of first-time payments be made within specific time guidelines, but only about 60% met this threshold between April 4, 2020, and Sept. 4, 2021. Wood highlighted that $438 million or 36% of the payments made during this timeframe were late. This trend of late payments has been going on for nine years, even before the pandemic.
Another concerning aspect is the improper payments made by the state. Wood’s audit revealed that $166 million in payments were made beyond the federal limit of 10%. Improper payments accounted for about 18% of total payments from April 1, 2016, to March 31, 2021. The rate in 2020 was 15.3% and it increased to 15.8% in 2021. Wood expressed frustration with the lack of consequences for these issues.
Antwon Keith, assistant secretary for the Division of Employment Security, defended the division’s actions and attributed the struggles to the unprecedented number of claims received during the pandemic. He emphasized the department’s efforts to prevent future issues, such as overhauling the unemployment website and implementing recommended improvements. Keith also highlighted the division’s success in preventing fraudulent payments.
However, Wood suggested that legislative action is needed to address these problems. She mentioned House Bill 471, which would require state agencies to submit progress reports on implementing audit recommendations. Wood believes that lawmakers need to hold the agencies accountable if they fail to meet the federal thresholds or implement the necessary reforms.
It is clear from this audit that North Carolina’s Division of Employment Security has serious shortcomings in its administration of unemployment benefits. The state needs to prioritize addressing these issues and ensuring that taxpayer dollars are being used efficiently and appropriately. Legislative action, as suggested by Wood, is a necessary step to hold the agencies accountable and prevent future problems. The people of North Carolina deserve better than what they’ve experienced in the past.
