Help could soon be on the way for thousands of Virginians dealing with unemployment issues. The Virginia Employment Commission shut down its claims system in an effort to launch a new and improved one.
When it comes to the backlog of unemployment claims, numbers are down from 2 million in September to about 437,000 now.
While the Joint Legislative Audit and Review Commission says it’s a step in the right direction, it’s a small one.
“VEC has not yet resumed collection efforts, despite federal requirements that states try to recover overpayments,” Project Leader for JLARC’s review on VEC Lauren Axselle says.
Even more alarming, JLARC says the number of incorrect payments is higher than $1 billion. It’s a result of fraud and mistakes.
“Considering the significant challenges VEC continues to face, it’s clear additional oversight and assistance is needed,” Axselle says.
JLARC called out the Northam Administration Monday, saying they could’ve allowed exemptions to speed up the hiring process or brought in the National Guard for backup.
The legislative watchdog wants lawmakers to do more.
“We’re going to introduce the concept of customer service,” Virginia Governor-elect Glenn Youngkin says. “Not a flawed process that actually processed $50 million of false claims and couldn’t process the ones that legitimate Virginians who needed help.”
Youngkin is promising to overhaul the agency when he takes office in mid-January.
“1.8 million Virginians who had to file for first-time unemployment benefits during this pandemic, who couldn’t get claims processed,” he adds. “It took a Supreme Court ruling to get them to go to work.”
The more than 200-page long report shows continuing problems with staffing, technology and payments still going to the wrong people.
The agency is eight years behind schedule for modernizing the system. As for when it will be up again, the VEC hopes next week.