LOUISVILLE, Ky. (WDRB) — Kentucky’s unemployment insurance system that was overwhelmed by record waves of unemployment claims during the COVID-19 pandemic is in the midst of its first overhaul in 40 years.As businesses were locked down to contain the virus’s spread, tens of thousands of Kentuckians found themselves in limbo for months as they waited for their jobless claims to be processed, delays that became a nagging political problem for Gov. Andy Beshear.Kentucky Election Coverage:Kentucky still uses the same decades-old system in 2024, but the state agreed in May to a six-year, $55.5 million contract with Deloitte Consulting to replace the antiquated technology.”This new system will help us better meet the needs of Kentuckians by improving accessibility and claims processing times, as well as safeguarding against potential unemployment insurance fraud,” Beshear said in a news release earlier this year.The state said the 90- to 120-day planning process with Deloitte is now complete, giving officials a better timeline for replacing the system.”The first phase will address critical tax system updates, which will allow employers to better understand their assigned rates, make payments and manage accounts,” Jill Midkiff, executive director of the Office of Communications for the Kentucky Education and Labor Cabinet. “Since the contract was awarded to Deloitte in late May 2024, more than 1,200 tax requirements have been reviewed to ensure functionality and regulatory compliance. This phase of the project is ongoing with implementation expected during the first quarter of 2026.”All these years later, the complaint from many continues to be that they can’t get through on the unemployment office number. “We apologize, but we’re currently experiencing a high call volume,” the other end of the line often says.The state continues to tell people they can get help by contacting the call center at 502-564-2900, Monday through Friday from 9 a.m. to 6 p.m. Staff at the Kentucky Career Center offices can also provide general UI claims filing assistance, as well connecting individuals with education, training, resume building, job search assistance, career development and more. “I’ve been waiting since April for my unemployment payments,” said one Kentucky woman who wanted to remain anonymous. “I was approved within a few weeks. I’ve attempted to go to the unemployment office and I’m told to continue filing my claims and was told eventually the payments will come through. Imagine not having a job for months in this economy. Totally unacceptable and beyond frustrating. I’m a single mom with a child starting school and I can’t buy anything. It’s very depressing. I’ve been working for years.””My husband is still waiting for assistance and we are struggling financially due to these delays,” another woman said. “He has tried to contact the numbers listed online but no answers. He’s gone to the unemployment office in person and was told the staff there has no updates and cannot give him an estimated date for his case to be processed.””I have submitted my request for unemployment compensation payment along with my job search information as requested on my claim on time as requested,” a third Kentuckian wrote to WDRB. “I check online periodically and it states my claim is in fact finding status, I have called the customer service line and I was told an adjudicator has my claim, but no time frame is given when the fact finding will be resolved. I am a veteran and I have checked with Kentucky Veterans services and they have referred me back to the KY unemployment customer service line where I get no details on my claim.”After a three-month wait, he said he finally got his unemployment check.The state said the new platform under Deloitte Consulting will actually be a mix of three systems that support employer contributions, benefits and appeals, each with its own customer-facing and internal staff component and thousands of specific system requirements based on federal and state laws. The state’s contract with Deloitte includes incremental system deliverables, training, organizational change management and data migration to allow for the final sunsetting of the old legacy system.The cost of the new system, including ongoing operations and maintenance expenses, will be supported by $85 million in funding approved by lawmakers, Midkiff said.”The limitations of the outdated system were compounded by the previous administration’s 2017 closure of more than 30 of the state’s 51 regional career centers, which provided job training and in-person assistance for unemployment insurance claimants,” KELC said in a written statement in July. “Additionally, the previous administration removed in-person unemployment services from the remaining career centers, forcing people to drive longer distances to the few remaining regional offices or to contact the Frankfort call center, which had only 12 employees at the onset of the pandemic.”For the second phase of the project, the new system is expected to make it easier for people to submit unemployment claims, review payments, receive benefits and submit appeals online. That phase is expected to start early next year and be fully functional by 2028.Kentucky Unemployment Coverage:Copyright 2024 WDRB Media. All Rights Reserved.
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