Whereas, The UIA has mismanaged potential fraud within the system, suspending benefits to deserving residents without forewarning or any regard for the impact on their lives. The UIA halted payments to 540,000 unemployment benefit accounts, without proper investigation, due to suspected fraud. More than half of these accounts have been cleared, an astounding error rate in identifying fraudulent activity. About 240,000 potentially innocent people are still waiting to see if their benefits will be approved or reinstated; and
Whereas, Governor Gretchen Whitmer and the UIA have failed to implement any meaningful changes to improve the situation. In any properly managed organization, a failure of this magnitude would have led to significant and timely changes in process, personnel, or both. Yet, the Governor has ignored legislators’ calls for leadership changes at UIA, and her efforts to address the situation have been wholly inadequate; and
Whereas, Governor Whitmer failed to address known issues at the UIA when she had the opportunity. Even before the coronavirus pandemic and the surge in claims, there was abundant evidence of problems at UIA. The Auditor General found that, across 2018 and 2019, about 28 percent of callers hung up before they were able to speak with UIA staff. While action was taken to address this problem, it is clear that issues persist; and
Whereas, Governor Whitmer has demonstrated a lack of preparedness, a lack of responsiveness, and ultimately, a lack of leadership in addressing issues at the UIA. While quick to unilaterally declare and extend orders that have impacted the lives of every Michigander and their ability to earn a living, she has been unacceptably slow in ensuring the proper systems were in place to mitigate the adverse impacts of her actions. Governor Whitmer’s ineffective leadership and poor decision-making have exacerbated the issues Michigan residents are facing during this deeply uncertain and difficult period. She has failed to meet the trust placed in her by the people of Michigan; and
Whereas, Promptly signing Enrolled Senate Bill No. 690 of 2020 will be a critical step in addressing the issues Governor Whitmer has allowed to fester at the UIA. The bill provides funding for an additional 500 temporary employees at the agency. This supplemental workforce would greatly enhance the agency’s ability to efficiently process claims; now, therefore, be it
Resolved by the Senate, That we condemn Governor Gretchen Whitmer’s inaction in addressing issues at the Unemployment Insurance Agency (UIA) with residents filing for and receiving unemployment benefits; and be it further
Resolved, That we urge Governor Whitmer to promptly sign Enrolled Senate Bill No. 690 of 2020 and provide critical resources to address the backlog at the UIA; and be it further
Resolved, That copies of this resolution be transmitted to the Governor, the Director of the Michigan Department of Labor and Economic Opportunity, and the Director of the Unemployment Insurance Agency.
The question being on the adoption of the substitute,
Senator MacGregor requested the yeas and nays.
The yeas and nays were ordered, 1/5 of the members present voting therefor.
The substitute (S-1) was adopted, a majority of the members serving voting therefor, as follows: