Livingston Today

State Representative Ann Bollin is urging for bipartisan reforms to address the failures and shortcomings of Michigan's unemployment agency. This comes after a new audit conducted by the nonpartisan Office of the Auditor General revealed further issues with the state's Unemployment Insurance Agency (UIA). The audit, the fifth and final in response to a 2020 request by legislative leaders, highlights the UIA's failure to investigate and address fraud and improper payments during and after the COVID-19 pandemic.

Rep. Bollin, a Republican from Brighton Township, expressed her concerns regarding the audit findings, stating, "The audit findings underscore a distressing reality: a broken system plagued by persistent problems." She emphasized that the UIA left legitimate claimants waiting for weeks during the pandemic and pursued repayment from struggling families for agency errors. Furthermore, it was revealed that the agency had not taken action against clear instances of fraud, where individuals applied for benefits using the identities of deceased individuals.

Contrary to the claims made by the Whitmer administration that the problems at the UIA had been resolved, the audit shows that improper payments were made to individuals who were deceased, incarcerated, or living in long-term care facilities as recently as 2022, years after the start of the pandemic. The audit specifically focused on the Investigations Division at the UIA and found that the agency failed to identify a significant number of imposter claims and recover payments and penalties. The report also disclosed an additional $245.1 million in potentially improper payments to ineligible individuals, even after it was discovered that the recipients were deceased or in prison. Shockingly, the UIA did not take any action to evaluate or rectify these payments.

In a separate development, the state of Michigan has agreed to pay $20 million to settle a class action lawsuit filed by residents who were wrongly accused of fraud by the Unemployment Insurance Agency. These individuals faced severe penalties and aggressive collection techniques as a result of the agency's errors.

Rep. Bollin has been a vocal advocate for unemployment system reform and has been actively involved in efforts to improve the UIA. She introduced a plan in 2021 and again in 2023 aimed at reforming the agency, increasing transparency, preventing fraud, and enhancing customer service for both unemployed workers and employers. However, House Bills 4369-4374, which encompass these proposed reforms, have been awaiting review by the House Ethics and Oversight Committee since April, with no recent meetings held.

"The failures at the unemployment agency clearly require attention," Rep. Bollin emphasized. "We must work together to implement reforms that root out fraud, instill transparency, and elevate the level of service for the workers and the job providers who invest in this system."

The audit's findings and Rep. Bollin's renewed call for reform highlight the urgent need for action to address the issues plaguing Michigan's unemployment agency. Bipartisan efforts are necessary to ensure that the system functions efficiently, fraud is prevented, and support is provided to those in need.

To learn more, click on this link: https://gophouse.org/posts/rep-bollin-renews-call-to-fix-broken-unemployment-agency-after-audit-reveals-failures