Faced with an avalanche of complaints from unemployed Californians who have been unable to obtain unemployment benefits, Governor Gavin Newsom said Wednesday that he formed a “strike team” to address problems with the system and will streamline the process to resolve claims.
The announcement came on the eve of a legislative hearing about problems in the unemployment insurance program in which department officials are expected to be questioned about complaints of computer glitches and clogged phone lines that prevent claims from being filed.
“There should be no barriers between Californians and the benefits they have obtained,” Newsom said in a statement. “Unprecedented demand due to job losses during this pandemic combined with an outdated system has created an unacceptable backlog of claims. Californians deserve better, and these reform efforts aim to move the [Employment Development] Department at that address.
The new strike team will be led by the secretary of the Government Operations Agency, Yolanda Richardson, and Jennifer Pahlka, founder of the open government group Code for America.
The team will develop a 45-day plan for improvements to the state’s Employment Development Department, including a review of its inefficient technology systems, Newsom said.
California has processed 8.7 million unprecedented unemployment benefit claims since March, when Newsom ordered Californians to stay home to reduce the spread of COVID-19. That order shut down much of the state’s economy, leaving millions out of work.
But many people who lost jobs or income say they have been unable to obtain the benefits for which they are eligible. They said that the blocked EDD phone lines have prevented them from communicating with a live service representative who can help them resolve complaint problems.
Others complain that the EDD’s old and inadequate computer system has prevented them from completing claims online.
The governor said Wednesday that new efforts will focus on nearly 1 million unpaid claims that may be eligible for payment but that require more information. Many claims are “pending resolution” because they have problems to resolve, including verification of the declarant’s identity. Newsom said it hopes to remove the backlog by the end of September.
Assemblyman Jim Patterson (R-Frenso), one of the EDD’s top critics, was skeptical of the governor’s announcement.
“Governor Newsom has become famous for his words, not his actions,” Patterson said in a statement in response to the announcement. “It is our responsibility in the Legislature not only to hold the EDD accountable, but also the Governor.”
The EDD has been left behind as more claims were filed, according to a report by the agency’s director, Sharon Hilliard, which was released on Wednesday.
In March, 87.8% of claims registered initial payments within 14 calendar days, but by June the number had dropped to 51.9%, according to the report.
The state will prioritize older claims first, and is developing a more “user-friendly” process for notifying and communicating with customers, including updated interactive voice response automation that will route each caller to a representative who has specialized training on that specific topic.
California Labor Secretary Julie Su said her goal is to create a “human-centered system” that people can use in difficult times.
“From the first contact to the final resolution and all intermediate communication, we are committed to making [unemployment insurance] experience better for Californians, ”said Su.
Administration officials are expected to deliver the same message to frustrated and angry state lawmakers on Thursday, as an Assembly budget subcommittee on state administration is convening a supervisory hearing on the agency.
Assemblyman David Chiu (D-San Francisco) is among those attending the hearing. He said he is pleased that the governor is working to address some of the issues raised, but said the plan described “only scratches the surface of the disaster that is EDD.”
“Despite months of good faith efforts to work constructively with EDD leadership to resolve the myriad of issues affecting the agency, little or no progress has been made,” Chiu said. “Waiting until the end of September to clear the backlog of unfulfilled claims and devising a plan for web improvements feels inadequate given the number of people who have been without income since March.”
