East Michigan News

State Reps. Mike Harris and Tom Kunse have strongly criticized committee Democrats for attempting to downplay the failures of the Unemployment Insurance Agency (UIA) in handling billions of dollars in fraudulent payments during the COVID-19 pandemic. The lawmakers participated in a joint committee hearing to review a damning audit report that uncovered multiple critical deficiencies.

The December 2023 report by Michigan’s nonpartisan Office of the Auditor General revealed significant shortcomings within the UIA, including issuing $245.1 million to likely ineligible individuals. Rep. Kunse expressed his disappointment with UIA Director Julia Dale's attempt to portray the recovery of $90 million in fraudulent payments as a success, stating, "What Director Dale did today is no different than if a college football coach celebrated their team’s single field goal as a great victory after U of M blew them out 97-3."

Rep. Harris echoed these sentiments, emphasizing the need for real accountability and reform within the agency. He highlighted the repeated failures in the unemployment system and called for ongoing oversight and substantial changes to address the deep-rooted issues.

During the hearing, House Democrats sought to justify the billions in fraudulent payments by citing staffing shortages and software issues. However, officials from the Office of the Auditor General attributed the failures to the human programming of the software and the lack of internal controls within the UIA. Despite claims of funding shortages from UIA officials, auditors suggested that there is still an opportunity to recover some of the fraudulent payments.

Rep. Kunse proposed a potential solution to address staffing shortages by allowing the UIA to retain a portion of the recovered funds. However, he expressed skepticism about the agency's ability to recoup the money and emphasized the loss of public trust in the UIA.

Following the hearing, Democrat committee leadership indicated that they do not see a clear need for further legislative oversight, prompting criticism from Reps. Harris and Kunse. The lawmakers are adamant about the necessity for ongoing scrutiny, accountability, and substantial reforms to rectify the systemic issues within the UIA.