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Billions in Unemployment Benefits Paid in Error

1Perry

1Perry

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Nearly $19 billion in state unemployment benefits were paid in error during
the three years that ended in June, new Labor Department data
show.

The amount represents more than 10% of the $180 billion in jobless benefits
paid nationwide during the period. The tally covers state
programs, which offer benefits for up to 26 weeks, from July 2008 to June 2011.
Layers of federal programs that help provide benefits for up to 99 weeks weren’t
included.

I wonder how many more billions we are talking about if all programs were counted?

Billions in Unemployment Benefits Paid in Error - Real Time Economics - WSJ
 
Alright, guys. How about doing as the late Paul Harvey use to say and tell "the rest of the story".

From the OP article:

The figures were released Wednesday as the Obama administration promotes its bid to reduce waste at federal agencies. The federal government foots the bill for administering the programs, and states are supposed to pay for the benefits. Many states exhausted their unemployment insurance trust funds during the long recession and slow recovery, prompting them to borrow from the federal government to replenish their funds.

Improper payments most often occur when recipients claim benefits even though they have returned to work; employers or their administrators don’t submit timely or accurate information about worker separations; or recipients don’t correctly register with a state’s employment-service organization.
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So, don't try to pin this on the Fed. States have a responsibility, too. The Fed can only act on the timely and accurate information they receive from the States. So, if they're not providing the correct information in a timely manner, how do you expect the Fed to be able to distribute unemployment funds properly?

Now, the question we can all ask is will the Fed go after those States they overpaid to get the money back?

Again, from the article:

The Labor Department launched a plan to crack down on the improper payments, targeting Virginia, Indiana, Colorado, Washington, Louisiana and Arizona in particular for their high error rates. Those states will undergo additional monitoring and technical assistance until their error rates dip below 10% and remain there for at least six months, according to the Labor Department.

“The Unemployment Insurance system is a unique partnership between the federal government and the states. States bear the responsibility of operating an efficient and effective benefits program, but as partners the federal government must be able to hold them accountable for doing so,” Labor Secretary Hilda Solis said in a release.
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So based on the above statement, it doesn't appear as though the Fed will demand restitution from the States in this matter. But atleast they'll target...um..."monitor" those States that have been overpaid. That's a start to bring improper unemployment payments under control in the affected States at least. So, before you start on this "the Federal government can't do anything right," let's first get "the rest of the story."

State's rights anyone?
 
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Gipper said:
In my opinion, all 180 billion of it was paid in error.
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...says the person who likely still has a job or is self-employed. Of course you'd think that way. You can still put food on the table, pay your rent, gas up your car no matter its condition and get to your 9-5 without much of a care in the world. But what about those people who lost their job through no fault of their own? What about the man or woman who gave 10, 15, 20 years of their life to a company and either had no immediate plans to retire or wasn't quite ready to retire just yet for whatever reason but due to a company's financial struggles were laid-off and you fell into one of three catagories:

a) last hired, first fired; or,

b) "you're old and it would cost a mint to pay out retirement payments. So, to save money we're letting you go...sorry"; or,

c) you were part of the downsizing crowd and your position was deemed "non-essential/non-priority"...sorry.

Of course, there is that fourth category - the dead beats. They don't count.

Other than the dead beats, I've seen all three happen to some really good, hardworking people who didn't deserve to be cast aside. But that's the trickle-down effects of the irresponsibility that occurs when companies at the top of the economic food chain behave badly (re: big banks and investment firms, and state's the failed to manage their budgets properly). Their greed and/or wrecklessness have caused harm to alot of people who didn't deserve to lose their jobs, but they're paying the untimate penalty for someone elses mistakes while bank CEO, CFO and politicians still have their jobs and are still getting paid.

So, before you start eluding to the unemployed not deserving of a dime of unemployment benefits, I think you should first be thankful you still have a job and second try to understand that not every person who is now unemployed performed at such unsatisfactory levels that they deserved to be let go.
 
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Councilman said:
Welcome to the wonderful world of normally accepted efficiency of bureaucracy.
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I saw a clip from the solyndra hearings where a democrat was saying that Republicans were being ridiculous, because obviously nobody in government has a crystal ball, so it's not like they knew when they invested money in Solyndra that it was going to go down.... my wife stuck her head in to ask why I was shouting at the screen "THAT'S THE POINT, YOU MORON!!! YOU PEOPLE ARE NO F*****G GOOD AT THIS!!!".
 
Objective Voice said:
Alright, guys. How about doing as the late Paul Harvey use to say and tell "the rest of the story".
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Deflecting blame is not telling the rest of the story. It's just deflecting blame. Then we wonder why people are so reluctant to pay more in taxes when they know that if the fraud and waste would be addressed, there would be a ton more money in the governments, be it state or federals coffers.

If a business is lax on their reporting there should be equal in fines. That would get their reporting more up to date. The story doesn't tell. How much of this has anyone attempted to recover?

I DO NOT care who is at fault. FIX IT!!
 
cpwill said:
I saw a clip from the solyndra hearings where a democrat was saying that Republicans were being ridiculous, because obviously nobody in government has a crystal ball, so it's not like they knew when they invested money in Solyndra that it was going to go down.... my wife stuck her head in to ask why I was shouting at the screen "THAT'S THE POINT, YOU MORON!!! YOU PEOPLE ARE NO F*****G GOOD AT THIS!!!".
Click to expand...

The thing is, they were warned that the company was a huge risk. (enough with that, there are already threads on Solyndra).
 
Objective Voice said:
...says the person who likely still has a job or is self-employed. Of course you'd think that way. You can still put food on the table, pay your rent, gas up your car no matter its condition and get to your 9-5 without much of a care in the world. But what about those people who lost their job through no fault of their own? What about the man or woman who gave 10, 15, 20 years of their life to a company and either had no immediate plans to retire or wasn't quite ready to retire just yet for whatever reason but due to a company's financial struggles were laid-off and you fell into one of three catagories:

a) last hired, first fired; or,

b) "you're old and it would cost a mint to pay out retirement payments. So, to save money we're letting you go...sorry"; or,

c) you were part of the downsizing crowd and your position was deemed "non-essential/non-priority"...sorry.

Of course, there is that fourth category - the dead beats. They don't count.

Other than the dead beats, I've seen all three happen to some really good, hardworking people who didn't deserve to be cast aside. But that's the trickle-down effects of the irresponsibility that occurs when companies at the top of the economic food chain behave badly (re: big banks and investment firms, and state's the failed to manage their budgets properly). Their greed and/or wrecklessness have caused harm to alot of people who didn't deserve to lose their jobs, but they're paying the untimate penalty for someone elses mistakes while bank CEO, CFO and politicians still have their jobs and are still getting paid.

So, before you start eluding to the unemployed not deserving of a dime of unemployment benefits, I think you should first be thankful you still have a job and second try to understand that not every person who is now unemployed performed at such unsatisfactory levels that they deserved to be let go.
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Yeah, I get all that. I'll spare the Stalinesque comparison about what's a tragedy and a statistic, and just say that I was not against people getting the unemployment they both normally would get, and have already paid into. The problem is that some fields were eliminated altogether. Instead of realizing that, people just kept on their standard paths, acting like it was cyclical and they'd get something again soon.

Then the problem exists with people wanting to maintain their lifestyles when they are not able to do so. If you and your wife both lose your jobs, or the main breadwinner does and the other cannot support on that salary alone, adjust your bottom line. This may mean moving in with one of your parent(s) or other family members, or finding a friend to make an agreement with, even though sort of cramped. Instead, all these people want nothing to change - even though their revenue source has.

Any sympathetic or emotional pleas fall on deaf ears when it comes to putting your hands in my wallet.
 
and lets not rule out the individual who knowing plays the system and files a bad claim. Yes the States also share in some responsiblility. Yet the process all starts with an individual filing a claim.
 
mike2810 said:
and lets not rule out the individual who knowing plays the system and files a bad claim. Yes the States also share in some responsiblility. Yet the process all starts with an individual filing a claim.
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Yes... we should all recognize the fact that a large part of this is due to fraud, especially people who continue to collect after finding work. It is they who should face stiff penalties, for effectively stealing from their fellow citizens. Garnish their wages and get the fraudulently distributed money back!
 
There is an expectation that one needs to be honest with the government. And it seems like the government is catching people when they are not.
 
Gipper said:
In my opinion, all 180 billion of it was paid in error.
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ROFL..and if thats the case, id be all for handing out pistols, shotguns and rifles to those out of work with not a dime of income that cant find work and hungry kids....this way they go hunt rich greedsters and take theirs...I know alot of nam vets that would join that cause...that can still put a round in thier ear at 100 meters
 
Mr. Everson pointed out that in Indiana, benefit recipients are required to list three work searches. If a recipient fills out only two of the three searches correctly, there are cases when the recipient can still receive benefits. But that counts as an error.
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so the error was that people sometimes applied for two jobs instead of three jobs in a week and still got the payment? wow, that's outright fraud. what a wasteful computer glitch that enabled those freeloaders to receive the money that they paid in. obviously, the proper solution is to cut them off without a dime. just think of all of the bank bailouts we could have paid for with that money.
 
lpast said:
ROFL..and if thats the case, id be all for handing out pistols, shotguns and rifles to those out of work with not a dime of income that cant find work and hungry kids....this way they go hunt rich greedsters and take theirs...I know alot of nam vets that would join that cause...that can still put a round in thier ear at 100 meters
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Hey I'm all for it ... lets have a good ole fashion civil war...... and see who comes out on top ... .
 
lpast said:
ROFL..and if thats the case, id be all for handing out pistols, shotguns and rifles to those out of work with not a dime of income that cant find work and hungry kids....this way they go hunt rich greedsters and take theirs...I know alot of nam vets that would join that cause...that can still put a round in thier ear at 100 meters
Click to expand...

This is the writing of a self-proclaimed Moderate. It would be interesting to see your views if you took a less centric position.
 
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