By Dick Hall-Sizemore
The Virginia Employment Commission has been inundated with unemployment insurance claims. Virginians seeking to file claims have been frustrated at not being able to get through to the agency with their questions and by delays in receiving payments.
All of this was the subject of a meeting and presentation to a Senate Committee on Tuesday as reported by the Daily Press. As has been speculated by Steve Haner in his comments on this blog, the Unemployment Trust Fund is in the hole. According to a presentation by the VEC to the Senate Committee, the trust fund balance has gone from $1.5 billion at the beginning of FY 2020 to a projected -$500 million.
None of that is too surprising. What did intrigue me, however, was an excuse often made by agencies — antiquated technology. A VEC spokeswoman explained that it was put into place in 1985. As far as the VEC is concerned, that excuse will not suffice.
The 2004 Appropriation Act provided VEC almost $21 million to “upgrade obsolete information technology systems.” Two years later, the 2006 Appropriation Act included language authorizing VEC to utilize $51 million in federal funds “to upgrade obsolete information technology systems.” That identical language was included in every Appropriation Act since then. In a 2020 budget decision package submitted to the Department of Planning and Budget, VEC said that the upgrade “is scheduled to be completed prior to the end of fiscal year ending June 30, 2021” and offered to return $3.2 million of the appropriation.
There may be good reasons why it has taken VEC more than 15 years to upgrade its information technology systems. At the very least, VEC owes the General Assembly an explanation. Going further, JLARC should investigate this delay. Unemployed Virginians deserve better than a shrug and the modern version of “the dog ate my homework.”