We are now two months into the societal shutdown caused by
the COVID-19 pandemic, but it honestly feels much longer. It’s seems hard to remember when we nonchalantly
shook hands, greeted others with hugs and pats on the back, and could see the
faces of folks we encountered in a grocery store. It isn’t bad enough that the
pandemic economy shutdown has caused unprecedented job losses, but help for many
of those who lost jobs or their businesses or had their hours cut back has been
tangled up in a jungle of bureaucracy compounded by a 50-year old, antiquated
computer system. Because of the success of
Vermont’s response to the pandemic in flattening the curve and avoiding an
overwhelmed health care system, Governor Scott is gradually “opening the spigot,”
as he puts it, to allow some businesses to reopen while maintaining proper
hygienic measures.
Showing posts with label unemployment. Show all posts
Showing posts with label unemployment. Show all posts
Legislative Report 5/14/2020 - Navigating the Unemployment System Jungle
However, the problems with unemployment assistance continue
to plague many Vermonters who are having trouble obtaining the benefits they
are owed and are running out of money. There
are several reasons for this situation that amounted to a perfect storm for the
Vermont Department of Labor (VDOL). (It should be noted that most other states
are having similar issues.) Take the age
of the computer system that handles unemployment claims. It is running on a mainframe computer that
was state of the art in the 1970s but is woefully outdated now. It is programmed in a language called COBOL. Programmers
familiar with COBOL are long-retired or about to retire. Large scale updates to the software are not
feasible or practical. Two attempts over
the last decade to replace the system, both of which were part of a consortium of
several states to share the cost of development, have not been successful.
So, now we’re stuck with an inadequate system that was
working fine when there were 200 to 400 applications per week but can’t handle the
87,000 that were generated en masse since mid-March. The 65 regular VDOL
employees who input and process claims were overwhelmed. Calling into the department became virtually
impossible. Since the initial flood of claims, 200 additional personnel were
hired, including a call center firm called Maximus. At the same time, the federal CARES Act
allowed self-employed persons, who don’t qualify under the regular system
because they don’t contribute to the unemployment insurance (UI) fund, to sign
up for benefits. As a result, a new, unfamiliar Pandemic Unemployment
Assistance (PUA) system had to be set up alongside the UI system to handle an
additional 17,000 claims. To complicate
things further the relaxed rules for claiming unemployment were relaxed were
not reflected in the programming which caused some applicants to be incorrectly
disqualified.
Every one of the 180 members of the Vermont House and Senate
have heard from constituents who are rightly frustrated at their inability to navigate
the jungle that is currently the state’s unemployment system. After hearing from constituents for weeks, the
House created a spreadsheet to allow legislators to record the complaints and
situations of their constituents for referral to a special Labor Department
team. In addition, 24 legislators have volunteered
to assist in connecting claimants on that list to appropriate department
employees. The Labor Department has also taken steps to reverse negative
eligibility codes received by many applicants. As of May 10th, 54,000 of the 61,000
UI claimants determined to be eligible have been paid, and 8,600 of the 17,000
PUA claimants have received payment. Both the administration and the
legislature know that more must be done, and we are working cooperatively to
achieve that for our constituents. Be
well, stay safe, and persist.
I welcome your emails (myantachka.dfa@gmail.com) or phone
calls (802-233-5238).
Legislative Report 4/30/2020 - The Legislature Continues Its Work Remotely
The daffodils and hyacinths are finally blooming in the
yard, the ground isn’t quite as soggy as it was last week, and May is upon us. Ironically,
unemployment is at depression-level highs around the world as a result of the
COVID-19 pandemic. Here in Vermont, the infection and hospitalization levels have
been well-controlled as a result of steps taken early by Governor Scott under
the direction of Health Commissioner Dr. Mark Levine and State Epidemiologist Patsy
Kelso. The curve has been flattened,
allowing some easing of restrictions on outdoor work like landscaping and
construction if social distancing and hygienic guidelines are observed. And the
difficulty many Vermonters who tried to apply for unemployment benefits experienced
should now be easing with additional personnel staffing the Department of
Labor. Anyone still having a problem should contact me to see if I can help.
The legislature finally met in session using Zoom to approve
the change to House Rules allowing us to vote remotely and to pass several key
bills related to the health crisis. The change of rules required a 3/4 majority
approval to take effect, and the vote was unanimous by the 147 legislators in
attendance. With that approval, the House took up four bills pertaining to
changes in the law for the duration of the COVID-19 emergency. These bills provide for the administration of
the Pandemic Unemployment Assistance program which relates directly to
independent contractors and others who are self-employed, permit remote
execution of a will and notarization of documents without having to be in
direct contact with other people, and provide our State Treasurer with tools to
proactively manage State and local cash flow needs. We expect to hold more
floor sessions in the weeks ahead. You can watch recordings of House meetings,
and live floor sessions, by following our legislative page on YouTube:
https://www.youtube.com/channel/UCC1w34Iyg1vB_HT6dt_4eMA
This is an unusual session for many reasons, not the least of
which is the uncertainty of the financial future. The economic fallout will certainly reduce
revenues coming into the state from income and corporate taxes, sales and use taxes,
and transportation fuel taxes. Since all sales and use taxes now go into the
Education Fund, there will be less money to support the school budgets that
have been passed. There is also a lot of uncertainty about what aid the federal
government will provide to the states. As
the legislature adapts to all this uncertainty, we will work to pass an interim
budget that will get Vermont through the first quarter of the next fiscal year
(FY21). The plan is to adjourn in late May or early June and return in August
to pass a more complete budget for FY21.
In the meantime, the proposed closure of three Vermont State
College campuses last week surprised everyone and created an immediate
backlash. While the legislature in recent years provided less funding for the VSC
system than requested, its costs have mounted, and the current crisis has
exacerbated the deficit, The backlash by
students, faculty, the public, the Governor and legislators caused the proposal
to be withdrawn. The legislative leadership of the House and Senate have
committed to taking a serious look at VSC configuration as well as funding. VSC
must provide an affordable and accessible opportunity for post-secondary
students across Vermont to get a college degree.
* This meeting notice was published prior to May 1.
Legislative Report 4/2/2020 - Improvise, Adapt, Overcome
The unofficial slogan of the U.S. Marine Corps is “Improvise,
Adapt, Overcome.” When faced with the unexpected,
the success of a mission requires the ability to change tactics quickly. The
COVID-19 crisis has certainly been unexpected and has forced us to adapt our
lifestyle quickly. The last two weeks also marked a significant shift in the
work of the Vermont legislature. The leadership of all three parties - Democrat,
Republican and Progressive - worked hard to keep abreast of the state's efforts
to manage the Coronavirus (COVID-19) emergency and figure out a way to keep the
legislature working. Daily meetings of
the Joint Rules Committee, chaired by Senator Tim Ashe, got updates from the
heads of departments and agencies via conference calls that were open to the
public. These calls were regularly attended by other legislators and were the
source of my communications with you on Front Porch Forum. Last Wednesday the
House, by a quorum of legislators who made a special trip to Montpelier being
careful to maintain "social distancing", changed its rules to allow
remote voting both in committee and on the floor, matching what the Senate had
approved the week before. Following that vote House committees began meeting
online to conduct the business of taking testimony on bills.
As we all settle in to maintain Governor Scott's "Stay
home, stay safe" directive, we all have questions about how long this will
last, how our incomes will be affected, when the kids will go back to school,
how our small businesses will stay afloat, and so forth. There is no definite
answer to these questions, but recent actions taken by the state and by the
federal government have provided some certainty to some of them. During the
brief session last Wednesday, the House also approved two bills in concurrence
with the Senate amendments to support both working Vermonters who are forced to
stay home and our health care system and workers who are on the front lines of
defense against COVID-19.
Employees are immediately eligible for unemployment benefits
and their employers are held harmless from Unemployment Insurance (UI) rate
increases. While childcare centers have
been ordered closed, a certain number will remain open to serve families where
both parents are essential workers, a designation determined by the
administration. The provider tax on medical providers, including hospitals, is
being abated during the emergency, and emergency authority is given to the
Departments of Financial Regulation and the to react to evolving needs,
including considering requiring insurance companies to eliminate copays for any
prescriptions during the crisis. Testing for COVID-19 according to Department
of Health guidelines will be free. The healthcare workforce will be boosted by
temporarily relaxing licensing rules, and delivery of health care services by
telemedicine will be reimbursable by insurance companies.
Because self-employed persons do not pay into the UI Fund,
they are not currently eligible for unemployment benefits. However, the COVID-19 relief legislation
passed by Congress will extend benefits to self-employed and "gig-economy"
workers as well as boost the maximum UI benefit by $600. Each adult will also
receive a $1200 federal check and $500 per dependent child. The legislation
provides $2 Trillion that will include aid for businesses, hospitals and
states. Vermont will receive $1.25B for
COVIID-19 expenditures. The aid is not
intended for revenue replacement, however, and can only be used for
expenditures not in the most recent budget.
This still leaves Vermont and other states in a precarious position
since expected revenues will be impacted due to the economic shutdown
jeopardizing existing programs.
While individuals will be receiving some income from the
state and federal government depending on their situation, it may not be enough
to continue meeting monthly payments for rent, mortgage, utilities, etc. Federal legislation has put a moratorium on
foreclosures of federally backed mortgages and on evictions. In Vermont the
Judicial system has made it clear that during the COVID-19 emergency, when
everyone must stay at home, evictions will not be processed. Vermont banks have
also agreed not to proceed with foreclosures for delinquent mortgage payments
for the next 90 days. To be clear, however, this does not mean that rents or
mortgages are forgiven. They will still
have to be paid in full after the emergency ends. Furthermore, if homeowners or renters can
afford to pay, they are encouraged to do so in order to make future payment
easier on themselves and provide cash flow to help landlords meet their
obligations.
This will be a trying time for all of us. As I told my granddaughter, by keeping
ourselves and each other safe with social distancing and willingness to help
when needed and able, we will come out stronger in the end. Be well and stay
safe.
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