DWD says upgrades to unemployment system on schedule, within budget
MADISON — The state Department of Workforce Development is about halfway through a modernization effort and is scheduled to complete its work on time and within budget, agency officials told reporters Tuesday.
The need for changes brought to light by the COVID-19 pandemic, as thousands of Wisconsinites found themselves out of work and applying for unemployment assistance.
The system for processing those claims was created in the 1970s and never updated despite the fact lawmakers knew it could become an issue. Nearly $80 million in federal funding was secured, and the update process began in earnest in 2022.
Priority number one was clearing the backlog that had amassed in the early weeks of the pandemic. The project has now moved beyond that initial benchmark, as the agency works to implement a modernized system with enough flexibility to adapt to changes in technology and demand.
"Our ultimate vision is a system of modern end-to-end services for DWD customers including claimants and employers. These services must be timely, accurate and inclusive," Secretary Amy Pechacek said.
The modernization project is expected to be completed in the next two years, and thanks to federal relief dollars and grant funding, the agency has all the funding it needs to do so, Pechacek said.
Going forward, the agency plans to assess modernization needs on an annual basis, "to make sure that we never find ourselves as a state 50 years behind in technology again," she said.
Pandemic exposed weaknesses in unemployment system
By the beginning of June 2020, it was painfully clear there was something amiss with the unemployment system in the state. The DWD was staffed to handle the low rates of unemployment the state had seen for many months leading up to the pandemic. When tens of thousands of people started claiming benefits, employees weren't able to keep up.
The DWD hired hundreds of workers, but wasn't keeping up with the influx of claims that started in late March as Gov. Tony Evers made the call to keep people "Safer at Home." Calls were going unanswered for those with questions about their applications. Claims were waiting in an ever-growing queue for processing and payout, reaching over 800,000 unpaid claims in early August.
Finally, a partnership with Google Cloud helped to cut down on the backlog of claims, but problems persisted into 2021. Thousands of people waited for months for appeals on wrongly denied claims, while the state lost money due to fraudulent claims as well.
Upgrades to the system have included artificial intelligence tools, moving from a 1970s-era computing system to a cloud-based system, clarifying language in application materials, automating some processes and making online materials easier to read for those with visual impairments.
The agency has opted to implement custom-built coding and modules rather than purchasing off-the-shelf software in an effort to make the system as adaptable as possible, Pechacek said. DWD contracted with Madison-based Flexion for the project.
Laura Schulte can be reached at leschulte@jrn.com and on X at @SchulteLaura. Jessie Opoien can be reached at jessie.opoien@jrn.com.
This article originally appeared on Milwaukee Journal Sentinel: Upgrades to Wisconsin's unemployment system on schedule
