Genesee News

State Representative David Martin is urging legislative leaders to take action and reform Michigan's unemployment agency following the release of a new audit by the nonpartisan Office of the Auditor General. The report highlights the ongoing failures of Governor Whitmer's Unemployment Insurance Agency (UIA) in addressing fraud and improper payments during and after the COVID-19 pandemic.

In response to the audit, Rep. Martin, a Republican from Davison, emphasized the need for substantial change, stating, "Ignoring the cracks in the unemployment system and turning a blind eye to fraud are unacceptable. Action to fix this broken system is long overdue."

The audit revealed that despite claims by the Whitmer administration that issues within the agency had been resolved, the UIA continued to make improper benefit payments to individuals who were deceased, incarcerated, or residing in long-term care facilities as recently as 2022, several years after the pandemic began.

Specifically, the investigation into the UIA's Investigations Division uncovered that between January 2020 and October 2022, the agency failed to identify a significant number of fraudulent claims and did not recover many payments and penalties. The audit identified an additional $245.1 million in potentially improper payments to ineligible individuals, even after the agency was aware of their deceased or incarcerated status. Shockingly, the UIA did not take any steps to assess the appropriateness of these payments.

Rep. Martin has been a staunch advocate for unemployment system reform since taking office in 2021. In October 2021, he sponsored a resolution calling for the resignation of the agency's director, which ultimately led to her departure a month later. Additionally, Martin and his colleagues in the House introduced House Bills 4369-4374, a comprehensive plan aimed at reforming the unemployment agency, enhancing transparency, preventing fraud, and improving customer service for both unemployed workers and employers.

Highlighting the urgency for immediate bipartisan action, Rep. Martin stated, "The latest audit sheds light on continued failures at the unemployment agency and emphasizes the need for immediate, bipartisan action. It's clear that we need to pursue reforms that prevent fraud, add accountability, and improve service to the businesses and workers who pay into this system and expect it to be available when they need it most."

The audit's findings underscore the critical need to address the deficiencies within Michigan's unemployment agency. Rep. Martin's call for bipartisan action to reform the agency and ensure its efficiency, transparency, and effectiveness is an essential step towards protecting the interests of both workers and employers in the state's unemployment system.

To learn more, click on this link: https://gophouse.org/posts/rep-martin-renews-call-to-fix-broken-unemployment-agency-after-audit-reveals-failures