New federal unemployment benefits could take as long as 20 weeks to process, California EDD head says

Amid a testy oversight hearing Thursday afternoon, Employment Development Department head Sharon Hilliard said California could take as long as 20 weeks to process any additional federal employment benefits once they come.

That’s because of what Hilliard calls an “antiquated” system for processing these claims, one that hasn’t yet been modernized.

The exact details of the federal benefits have not yet solidified in Congress. But as the original $600 weekly unemployment supplement introduced under the CARES Act nears expiration — July 31 is the last day — millions of Californians who depended on the extra financial help could soon face budget hardship.

To Assemblyman Jay Obernolte, R-Big Bear Lake, the potential further delay is unacceptable.

“I think that the level of outrage that you’re hearing today would be nothing compared to the level of outrage if we tell the people of California it would take almost half a year to process their unemployment insurance supplement,” he told Hilliard.

California’s unemployed workers, like those in the rest of the country, received an extra $600 payment each week from late March until last week. Congress is considering continuing the payment, but at a reduced rate.

Republican proposals would have jobless workers get $200 per week for up to 60 days, and then 70% of their lost wages. It’s that percentage that backers of the plan concede will be difficult for states to implement quickly – which is why they’re offering a flat rate for 60 days.

Hilliard’s testimony comes one day after Gov. Gavin Newsom announced hiring 5,300-strong temporary workers and the appointment of a “strike team” meant to help the EDD get through a backlog of nearly 1 million existing unemployment claims. Newsom has also thrown more contracts to consulting firm Deloitte in an effort to revamp the department’s decades-old computer systems.

But the Assembly’s budget subcommittee, of which Obernolte is a member, remains skeptical of the EDD’s ability to adequately address the existing backlog — not to mention the incoming federal benefits.

Committee members also scolded the department for delays in issuing benefits and for failing to return phone calls to constituents in need. They pointed to the four-hour window each business day during which benefit seekers can call highly trained EDD workers for assistance — one Assembly members and members of the public said is far too small.

“It is a slap in the face to every single Californian here,” said one caller to the committee, adding that he’s called the department as many as 1,200 times. “That is insane, and it’s unacceptable.”

According to a report from the Legislative Analyst’s Office, more than one in five workers across the state — about 4.4 million Californians — are currently receiving unemployment benefits. Its report also said that the EDD’s current claims processing workload is two to three times greater than the peak of the Great Recession — and as much as 25 times greater than in normal economic conditions.

But the state’s computer system, Hilliard said, has long been a problem. “We’re not the only state in this situation,” she added.

Many public commenters said they weren’t satisfied. Some called for her resignation.

“We’ve gotta do better,” said Assemblyman Jim Cooper, D-Elk Grove. “We can do better for the citizens of California.”

This story was originally published July 30, 2020 at 4:07 PM.