East Michigan News

State Representative Tom Kunse, a Republican from Clare, has expressed his concerns regarding the recent audit conducted by the nonpartisan Office of the Auditor General, which uncovered failures by the Michigan Unemployment Insurance Agency (UIA). The audit revealed that the UIA neglected to investigate improper payments made during and after the COVID-19 pandemic.

In a statement, Rep. Kunse drew attention to the importance of accountability and responsibility in handling taxpayer funds. He compared the situation to a bank theft, stating, "If someone walked into my bank and stole from my account, I’d count on the bank to do everything possible to track down my money. We fund the UIA with our tax dollars." He criticized Governor Whitmer and the UIA for not taking effective measures to track down fraudulent payments and ensure that the funds reached eligible recipients. Rep. Kunse highlighted the alarming fact that payments were made to inmates and nursing home patients, emphasizing the need for immediate action.

Rep. Kunse also mentioned a plan proposed by House Republicans to reform the UIA, which aims to increase transparency and connect jobseekers with necessary training. He argued that while UIA benefits are essential, providing unchecked support without oversight is not a sustainable solution. Rep. Kunse criticized Democrats for disregarding the proposed reforms and instead promoting a plan that he believes incentivizes individuals to avoid exploring career opportunities. He compared the UIA to a bridge on the verge of collapse and warned against the consequences of the Democrat plan.

The audit conducted by the Office of the Auditor General focused on the Investigations Division at the UIA during the period between January 2020 and October 2022. The findings revealed significant shortcomings in the agency's attempts to identify imposter claims and recover payments and penalties. Previous audits had already uncovered billions of dollars in fraudulent payments. The most recent report exposed an additional $245.1 million in potentially improper payments to ineligible individuals, even after the agency was aware of their incarceration or death. The UIA failed to address the appropriateness of these payments.

To address these issues, Rep. Kunse, along with his colleagues, co-sponsored a House Republican plan to reform the UIA. The plan aims to enhance transparency, prevent fraud, and improve customer service for both unemployed workers seeking benefits and employers paying taxes into the unemployment system. The proposed bills have been referred to the House Ethics and Oversight Committee.

The audit's findings and Rep. Kunse's statement highlight the urgent need for reforms within the UIA to ensure the proper allocation of taxpayer funds and prevent fraudulent payments. The proposed Republican plan, if implemented, could address the identified failures and improve the overall efficiency and effectiveness of the UIA. It remains to be seen how the Democrat-led committee will respond to these proposed reforms.

To find out more, go to this link: https://gophouse.org/posts/rep-kunse-unemployment-agency-audit-highlights-failures