In the wake of record unemployment claims during the COVID-19 pandemic, Kentucky found itself grappling with multiple issues relating to its decades-old system. During this time, tens of thousands of residents were left waiting for months while their claims were processed. The pandemic exacerbated an existing political problem, with severe delays affecting both governor Andy Beshear’s political standing and the livelihoods of many citizens. Despite the issues, Kentucky continued using its dated system until it entered a six-year contract with Deloitte Consulting in 2024. The $55.5 million contract aimed at replacing the outdated system was expected to improve accessibility, shorten claims processing times, and protect against unemployment insurance fraud.

Governor Beshear, who took up his role only months before the pandemic, expressed his hope that the new system would better support Kentuckians. Even though the unemployment backlog continued, affirmations from the state indicated the introduction of measures to protect the system from the downsides it had evolved into.

Steven Robinson’s experience illustrated the system’s disappointments. A previous project manager, he struggled with getting his unemployment claim resolved and was audited twice for the same claim. His story echoed the sentiments of many citizens frustrated with the system’s inefficiencies.

The state attributed the unemployment insurance system’s problems to budget and staffing cuts, the closure of more than 30 of Kentucky’s regional career centers, and more. Even though the new system was only due to be fully functional in 2028, it was hoped that the safeguards installed would protect against potential fraud. The state’s contract with Deloitte also included incremental system deliveries, training, organizational change management, and data migration.

In spite of the struggles faced by citizens like Robinson, there is hope for a more robust, efficient system for processing unemployment claims in the future. Tied to the $55.5 million contract with Deloitte, the new system is to be funded by the $85 million approved by lawmakers.

If you’re in Kentucky and need help navigating the unemployment system, it can be difficult to find direct assistance due to the ongoing backlog and challenges. However, you can try the website eddcaller.com, which provides guidance and resources on how to get ahold of edd customer service.