Date: 01/17/2012
Final
Department of Labor and Emplmnt SMART Act Briefing
COMMITTEE ON JOINT BUSINESS AFFAIRS & LABOR
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11:32 AM -- Department of Labor and Employment SMART Act Briefing
Ellen Golombek, executive director of the Department of Labor and Employment (DOLE), presented the department's SMART briefing and distributed a handout of her presentation (Attachment D). She talked about the divisions that make up the department and walked the committee through the handout.
11:47 AM
Ms. Golombek talked about the Unemployment Insurance (UI) Program and about the program's struggles complying with federal requirements. She listed the accomplishments the UI Program achieved in 2011 and talked about the program's goals for 2012. Ms. Golombek also discussed the issue of improper payments. Ms. Golombek talked about the call center as well. Jeff Fitzgerald, (DOLE), responded to Senator Mitchell's question regarding UI fraud and fraud recovery. Representative Szabo asked about the employee survey that was recently conducted and whether it is available on-line. Representative Soper asked the director to explain what the department would need in order for the department to carry out its duties.
12:10 PM
Senator Harvey asked about the UI fund recovery percentages. Mr. Fitzgerald explained that about 69 percent of improper payments made from state money are recovered, and about 35 percent of federal funds are recovered. Senator Harvey asked what is being done in order to improve that recovery rate. Mr. Fitzgerald responded. Committee staff distributed a fact sheet regarding the Unemployment Insurance Integrity Strategic Plan (Attachment E).
12:15 PM
Wayne Peel, Department of Labor and Employment, came to the table to respond to Representative Liston's questions regarding the state paying the federal government back at a 2.9 percent interest rate. Representative Liston commented on the previous 4 percent interest rate and talked about creating a bonding mechanism. Ms. Golombek talked about the current discussions surrounding using a bonding mechanism with the Treasurer's Office and business groups. Representative Swalm asked about garnishing wages to recover improper payments. Mr. Fitzgerald added that the state can also garnish tax refunds, gaming, and lottery money as well. A discussion ensued regarding improper payments. Representative Swalm asked how long an unemployed individual can be on unemployment and whether people are tracked after they have exhausted their unemployment benefits. Ms. Golombek stated that they do track that weekly and that the average stay on unemployment in Colorado is 16.5 weeks.
12:27 PM
Representative Swalm also asked about a recent increase in unemployment insurance rates. Ms. Golombek talked about the increase that came in 2010 because of the insolvency surcharge that kicked in when the fund went insolvent. She also talked about House Bill 11-1288 that was passed in order to stabilize rates.