Industry News
Hurricanes hinder crackdown on government overspending
January 10, 2006
After government agencies misspent an estimated $45 billion last year through overpayments, underpayments and payments that should never have been made, Bush administration officials vowed to crack down on the problem. The unemployment insurance program alone erroneously disbursed an estimated $3.9 billion in UI claims in 2004. With mispayments already a huge concern, the worst hurricane season on record increased the demand for federal benefits and assistance, and confounded the problems facing agencies.
Agencies have had to rely on every available resource to process the increased number of UI claims following the storms. And because the hurricanes destroyed many claimants' documentation proving their eligibility, some agencies have been waiving the procedures they normally use to screen for ineligible applicants. Also, recipients are relocating to other states to find jobs, while possibly still receiving a check from Louisiana—a problem agencies are hoping to contain by using the National Directory of New Hires.
Read the related article, "Crackdown on erroneous payments hits snags."