Republicans in the state Senate on Tuesday urged the state to strengthen the unemployment system in New York amid a surge of jobless claims due to the COVID-19 pandemic.
The lawmakers want a forensic audit of the state's information technology systems to identify weaknesses and also bolster digital infrastructure.
At the same time, the lawmakers want an assessment of potential fraud and ways to recoup the stolen money.
The push comes as the state Department of Labor has in recent weeks moved to strengthen anti-fraud efforts with an identity verification service. The sharp rise in unemployment over the last year has led to millions of dollars in unemployment support being paid out by the state, an opportunity for fraud on an almost industrial level.
“At the height of the pandemic, thousands of our fellow New Yorkers tragically lost their lives, and countless more lost their livelihoods,” Senate Minority Leader Robert Ortt said. “In far too many cases, our state government failed those struggling with economic insecurity last year, but nowhere were these failings clearer than in our state’s broken unemployment system. Every single lawmaker on both sides of the aisle has the same story: hundreds if not thousands of callers all begging our offices for some help to collect their life-saving benefits. First, we must examine what went wrong at the Department of Labor so we’re better prepared for the next time. While this is occurring, the state also has an obligation to make long-term investments for our future by providing these neglected New Yorkers with some much-need relief."
Meanwhile, the GOP conference also called for a tax break of up to $10,200 for unemployment benefits collected during the pandemic in 2020 in line with a recently enacted federal exemption. Lawmakers also called for a one-time forgiveness in unemployment overpayments.
“Those who faced unemployment because of the pandemic have been struggling to pay their mortgages, put food on the table and provide for their families,” said Sen. Jim Tedisco said. “Many have no job to return to because their businesses went belly-up. They should not have to pay state taxes on the first $10,200 of their unemployment insurance when the federal government is giving them an income tax exemption on the same benefit."