Pontiac Times

State Representative Donni Steele, a Republican from Orion Township, has criticized the Unemployment Insurance Agency (UIA) in Michigan after a recent audit report revealed failures within the agency. The report, conducted by the nonpartisan Office of the Auditor General, found that the UIA neglected to investigate improper payments made during and after the COVID-19 pandemic.

In response to the audit report, Rep. Steele stated, "Criminals have used the UIA as their personal checkbook. Every dollar sent to the deceased or incarcerated was money that didn't get sent to struggling families or reinvested into a broken agency." She further expressed her concern that the governor and the UIA seemed to disregard the illegal payments, emphasizing that money cannot simply reappear and that the UIA is funded by tax dollars from employers.

Rep. Steele criticized the lack of action taken by the governor and her administration, saying, "The governor knows this, yet she and her bureaucrats shrugged their shoulders and let criminals walk off with dollars contributed by our small businesses." She also highlighted the need for reform, stating that House Republicans have introduced a plan to overhaul the UIA, making it more open, accountable, and accessible for those who need it. The focus of the plan is to educate and prepare individuals receiving UIA benefits, while also identifying and obtaining long-term career opportunities.

In contrast, Rep. Steele accused Democrats of ignoring the issue and pursuing legislation that would expand benefits without implementing new oversight measures, which would only create more opportunities for fraud.

The audit report specifically investigated the Investigations Division at UIA during the Whitmer administration. It revealed that between January 2020 and October 2022, the agency failed to identify a significant number of imposter claims and did not attempt to recover many payments and penalties. Previous audits have already uncovered billions of dollars in fraudulent payments, and the most recent report revealed an additional $245.1 million in potentially improper payments to ineligible individuals, even after the UIA was aware of their deceased or incarcerated status. The agency did not take any action to evaluate the appropriateness of these payments.

To address these issues, House Republicans have put forth a package of bills, known as House Bills 4369-4374, aimed at reforming the UIA. The proposed measures would enhance transparency, prevent fraud, and improve customer service for both unemployed workers seeking benefits and employers who contribute taxes to the unemployment system. However, the bills are currently awaiting review by the House Ethics and Oversight Committee, which has not met since June under Democrat control.

The audit report and Rep. Steele's statements highlight the urgent need for reform within the UIA. As fraudulent payments continue to be uncovered, it is crucial that measures are taken to ensure accountability, transparency, and the proper allocation of funds to support struggling families and businesses.

To find out more, go to this link: https://gophouse.org/posts/rep-steele-audit-report-highlights-broken-failing-unemployment-agency