EDD reform is possible: CA UI system case study

Michael Bernick, former director of the California Employment Development Department, analyzes the UI system and bureaucratic problems uncovered during the COVID-19 pandemic. Newsom’s “Strike Force” identified recommendations that were then successfully implemented, decreasing backlogged claims. However, continued “vigorous” action is required, says Bernick. To receive daily updates of new Opp Now stories, click here.

In July, Governor appointed a “Strike Force” to evaluate the UI system, headed by Jennifer Pahlka, founder of Code for America, and Yolanda Richardson, Secretary of Government Operations Agency. The report issued by the Strike Force in September, took a detailed and thoughtful look at the system and its history—far more thoughtful than the usual empty government task forces. It suggested, for example, that EDD stop hiring additional claims administrators, since the new hires were not able to significantly contribute, and were taking experienced claims administrators away from their functions. It made several recommendations, the main one of which was the introduction of a new verification system, ID.me. This new verification allows for more rapid uploading of identity documents and reduces the need for manual verification.

The new verification system was introduced earlier this month, and is already beginning to reduce the backlog. Last Thursday, the EDD claims tracker showed the number of backlogged claims (those in the system more than 21 days without processing) down by over 200,000 claims in the past three weeks. But that still left more than 1.1 million backlogged claims, and EDD saying that it expected the backlog to be eliminated only by January 2021. Even this timetable will depend on a more vigorous employment recovery in the next few months.

This article originally appeared in Fox & Hounds Daily. Read the whole thing here.

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