newsobserver.com: Jobless told they owe money to the ESC

[Thiebear]

http://www.newsobserver.com/2010/09/28/706737/jobless-told-they-owe-money-to.html

This is how i see government after being in it etc.

They overpay quite a few people, underpay other due to probably not paying attention to details.

Then they put out a statement saying not only do they not know why, who , what or where.

They are unsure of collection and how. (its the perfect story).

Thousands of long-term unemployed North Carolinians could soon owe the state money because the Employment Security Commission improperly made about $28 million in payments over the last two years.

Last week, the ESC began sending out letters to about 38,000 people who it has determined were either overpaid or underpaid through no fault of their own.

Recipients, all of whom received unemployment benefits for a year or longer, are getting anywhere from one to six letters depending on the number of times their benefits have been extended.

The final letter has the correct amount due, but the letters often aren't arriving in the right order. The letters also tell people they can apply for a waiver to have the overpayment forgiven. But the ESC can provide no details on how each wavier will be evaluated.

Despite sending out the letters, the ESC was unable on Monday to provide an estimate of how many people will owe the state money.

"We are hoping a majority of these [final letters] will say zero," said Larry Parker, an ESC spokesman.

The ESC estimates about 15 percent of recipients were underpaid and will be eligible for additional benefits.

People who do owe money have until Oct. 8 to file the waiver.

"If their waiver's not approved they would have to owe money back," Parker said. "But we don't know how many that's going to be."

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How did it happen?

Parker said the improper payments are the result of the ESC paying people from the wrong funding sources and thus overdrawing some accounts and aren't the result of incorrectly calculating individuals' benefits. But he was unable to explain how the accounting problems might result in some people owing the state money.

"It's really very hard to explain," he said. "It gets really tricky just because of how the program evolved since July of 2008."

[10fttall]

Parker said the improper payments are the result of the ESC paying people from the wrong funding sources and thus overdrawing some accounts and aren't the result of incorrectly calculating individuals' benefits. But he was unable to explain how the accounting problems might result in some people owing the state money.

"It's really very hard to explain," he said. "It gets really tricky just because of how the program evolved since July of 2008."

That is the most unsatisfactory explanation I have ever heard for anything. I'd say launch an investigation to find out what really happened, but that would only cost ANOTHER couple million and take forever. Clean house at the ESC, institute some real accountants, and tell the unfortunate folks out there to not worry about the money.

[Duckus]

I would toss the letter in the trash.