Time Out on ESC Overpayments

North Carolina’s Employment Security Commission overpaid 38,000 unemployed residents $28,000,000, the latest screw-up from state government agencies. Evidence suggests managers knew about the problems but didn’t fix them in a timely manner.

When the error (seems like a mild word for such a big mistake) was discovered ESC officials decided to get the state’s money back by deducting amounts from future checks owed those who were overpaid. Immediately the response was that these people couldn’t afford to pay back the money, they are unemployed for Pete’s sake. So ESC and the Governor are now saying they are considering forgiving the overpayments.

Time out. Two wrongs don’t make a right and forgiving the overpayments is most certainly wrong because it makes the taxpayers of this state (and nation) foot the 28 million dollar bill. The state budget is already in a mess and our leaders want to take another big hit?

If it was wrong (and we think it was) for the Department of Revenue to refuse to give back income tax overpayments from taxpayers it is equally wrong for those overpaid unemployment benefits to keep those receipts. Just as the state didn’t deserve those overpayments, neither did the unemployed deserve to keep more than that to which they were entitled.

Surely there is a resolution to this fiasco that is fair to the state, fair to the unemployed and fair to the taxpayers. Let’s take a time out and find that solution.

Part of the solution is to demand more accountability from public employees and more leadership from the Governor and agency heads. Mental health, the Highway Patrol, SBI, the Department of Revenue and now the Employment Security Commission are demonstrating why people have lost confidence in government.

 

What did you think of this article?




Trackbacks
  • No trackbacks exist for this post.
Comments

  • 10/1/2010 10:07 AM Louis Johnson wrote:
    I could not agree with the person who wrote this comment about State Government. When will our North Carolina citizens ever wake up and decide enough is enough - CHANGE the people in charge from top to bottom - no matter if they are Democrats or Republicans, just vote'm out and start all over. They all get COMFORTABLE IN OFFICE and then anything they can think of is RIGHT no matter how wrong it is.
    Reply to this
  • 10/1/2010 10:08 AM wayne in chapel hill wrote:
    This is another in the long line of screw-ups that the State has tolerated over the last number of years. It is very frustrating to pay the people who run state government the kind of money that we are paying them and not have them accountable for their actions. If I were to screw up this badly as the ESC folks did, I would be one of the people who would probably be paying money back because I would probably be unemployed. It is time to have some accountability in Raleigh--and the best way to do that is to have someone else run the ship--namely Republicans.
    Reply to this
  • 10/1/2010 10:55 AM BSME69 wrote:
    Your list is incomplete. Don't minimize:
    Ferry Division operations
    Seclusion of personnel records
    Out-of-state athletic scholarships
    University executive hirings
    "Economic development" tax exemptions
    Elections investigation interference
    Alcoa re-licensing
    Golden Leaf funds mismanagement
    and on, and on, . . .
    Reply to this
  • 10/1/2010 5:46 PM easyboy wrote:
    The Governor is at it again, ordering forgiveness of tax payer funded overpayment errors to the unemployed. Does the Governor just think she can wave the magic wand like the President does and money will appear to buy votes and advance another socialist agenda. AS Mr. Campbell said, two or more wrongs don't make it right. Again the Governor has played the political card here at election time making yet another bad decision. I guess this too will add to her growing collection of bad deeds and go unpunished and uncorrected.
    Reply to this
  • 10/4/2010 2:44 PM Tom Hauck wrote:
    Do we know the exact reason for the overpayment?

    At one time they said, according to the N & O, they took the funds from the "wrong" account or "wrong" fund.
    Do not understand what that means.

    By the way, than you for the Check Spelling link. Makes me look pretty smart.
    Reply to this
  • 10/4/2010 5:14 PM Chuck Till wrote:
    I wouldn't be so hard on people who received overpayments. Problem is, NC ESC provides virtually no explanation of specific benefits. The money just comes -- and it if it changes from week to week, there's no explanation for the variance. I know this because I received UI payments last year.

    It's very unlike an income tax return, where the taxpayer presumably knows what he or she is entitled to receive, based on the return that was filed.
    Reply to this
  • 11/16/2010 10:36 AM Credentials wrote:
    $28 million dollar error....incredible. This just goes to show how much you can't trust the people who currently take up office. I couldn't agree more with Wayne from Chapel Hill. What needs to happen is a complete makeover of our government.

    Since the people who received the incorrect amount of money are unwilling to part with the difference. When they do get a job, then they need to pay out of there own pockets. Consider it a short term loan. You don't have any money right now, so the government gave you more than anyone bargained for. Just like any loan, you need to pay it back when you have the money. I think the money should be taken out just like child support is taken out of paychecks. When they get paid a set, annual amount of money should be set aside for this error. Like mentioned earlier, two wrongs don't make a right. If my father meant to give me a 20 dollar bill, but handed me a 100 dollar bill instead. I am obligated to pay that back. It was an error on both of our parts. His error was handing me a 100 dollar bill. Mine was spending it knowing it wasn't the correct amount.
    Reply to this
  • 9/12/2011 5:25 PM jack wrote:
    The unemployment insurance agency of MI. determination of overpayment in my case was totally the fault of the unemployment agency. I am being wrongfully accused I did everything by the book and still the agency wants me to pay back over $6,000 with interest that accrues daily in over payments. How could the agency have let this happen they are destroying life's and families. Someone must stop the incompetence of the people that work in the offices there are plenty of capable unemployed people that could do the job better and have experienced firsthand the dereliction of the employees that operate the unemployment insurance agencies of the united states. And sorry to the few unemployment agency workers that do care for people as individuals that do their best to never let things like this happen.. (Check this out) They even sent me a determination stating this. (It is determined that claimant did not intentionally make false statement or misrepresentation or conceal material information in order to obtain benefits which not entitled to). If that is not clamming responsibility on there part I don't know what is. (RITE). I tried writing them talking on the phone even took it to court. And never could I get any of the people to focus on the real problem. Which is the mistakes of the unemployment agency the just keep going back to the same thing which has nothing to do with my last employer and everything to do with the incompetence of U.I.A. Furthermore I still have no income so I cant pay I lost everything house, land , my dog’s, & my dignity. My questions are. Who dose the U.I.A. answer to for being so careless with the welfare of united states citizens? ANOTHER QUESTION IS. Do the employees receive some kind of kickback for finding things like overpayment's ergo people like me have been set up in order to line the pocket's U.I.A. employees?

    So no I do not agree with this statement. I think all overpayment cases need to be individually reviewed the people that have given false information or have concealed info or lied in order to receive payment should be held responsible to repay. All others should be waved. too much work you might say or it cost to much well first of all lets create more jobs this sounds like a good start. second this sounds cheaper then weaving all cassias even those involving criminal wrong doings.
    Reply to this
Leave a comment

Submitted comments are subject to moderation before being displayed.

 Name

 Email (will not be published)

 Website

Your comment is 0 characters limited to 3000 characters.