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Sen. Taylor: 'It would be great to help them in any way we can to get rid of the backlog'

PMG PHOTO: PETER WONG - Members of the Senate Labor and Business Committee, which conducted three days of virtual hearings about the Oregon Employment Department. Clockwise from top left: Chairwoman Kathleen Taylor, D-Milwaukie; Tyler Larson, committee administrator; Sen. Tim Knopp, R-Bend; Sen. Laurie Monnes Anderson, D-Gresham; Sen. Mark Hass, D-Beaverton. Not pictured is Sen. Bill Hansell, R-Athena, who joined by telephone.
Oregon lawmakers heard the frustration and felt the fury of people who have been seeking unemployment benefit payments for months.

When the Senate Labor and Business Committee wrapped up three days of hearings Thursday, about a dozen people had testified virtually — and more than six times that many filed statements — as members reviewed the performance of the Employment Department in processing more than half a million claims. Many of them have yet to be resolved.

In addition to more than 550,000 claims for regular benefits from the state unemployment trust fund — which come from employer taxes — the agency has had to deal with more than 100,000 claims from self-employed and gig workers that Congress made newly eligible for federal benefits.

Whether online or in writing, many witnesses at a hearing reserved for public testimony had a story to tell.

One of them was Joshua Ward, who was not forgiving of the agency's shortcomings. He said a lack of benefit payments has forced him to rack up expenses on credit cards.

"I've never had to interface with the government to receive benefits," he said. "I was furloughed, like many people were, and thrown into the system. I never got hold of the Employment Department and I got put into a negative feedback loop between the antiquated computer system and then calling and constantly hearing the 'hold' button."

Ward said he blames neither his state representative, Democrat Karin Power of Milwaukie, nor front-line workers at the agency. But he said no one has been held accountable for the agency's performance, not just during the current pandemic but going back a decade.

"Do something. This is a disgrace. I am frustrated. I feel disenfranchised by this whole process," he said. "I'm going to try my best never to have to rely on government again because clearly, you guys can't hold up your end of the bargain."

Agency turnover

In the past seven years, three Employment Department directors in a row have either retired under pressure or been fired by the governor. Two of the ousters were related to software or security failures linked to the agency's mainframe computer system, which dates back three decades and relies on a programming language first introduced in 1959. (A vendor for a new system is pending, a decade after the state received federal money for it.)

Gov. Kate Brown fired the most recent two directors, including Kay Erickson on May 31, the day after the House Business and Labor Committee held similar hearings on the agency's performance. She replaced Erickson with David Gerstenfeld, who had led the unemployment claims division for several years but had a different job when Brown named him acting director.

Gerstenfeld spent two days earlier this week testifying to the Senate committee — and he heard the public comments on the third day, though he did not speak.

He told reporters later that he took those and other comments to heart.

"We know how much people are suffering," he said in his weekly conference call with the news media. "We are continuing to do everything we possibly can to address those problems, prioritizing getting out payments to those who have been waiting far too long and stopping further problems from arising."

"We see that every day while we are doing our work. We are pushing to ease that pain as quickly as we can. We know that hearing that they should wait just isn't cutting it. It does not help people pay their bills or their rent or their groceries, or ease the fear and pain they are suffering."

Under Gerstenfeld, the agency has eliminated backlogs of 38,000 claims for regular benefits — they are being processed within a couple of weeks of filing — and 70,000 claims for federal benefits for self-employed and gig workers. But thousands in the latter program await adjudication of their claims, which involve getting tax-return information and verifying that they are ineligible for regular benefits.

"We're certainly making a lot of progress," he said. "But we know we are not there yet."

Sept. 22 follow-up

Chairwoman Kathleen Taylor, D-Milwaukie, said the committee will meet again at 1 p.m. Sept. 22 to hear an update from Gerstenfeld and the agency staff about what senators heard this week.

Gerstenfeld did not specify it, but Taylor said the agency staff is preparing to look into some of the details offered during public testimony. She said senators refrained from commenting on individual stories because of privacy concerns about unemployment claims.

"I learned quite a bit about the complexity of the situation," she said. "There are also some things I was frustrated about, not understanding why they could not be resolved and why things were not being managed in a way that I would like to see them managed. I have learned what some of those challenges are.

"As legislators, I think it would be great to help them in any way we can to get rid of the backlog of claims."

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