Tough questions on unemployment, health budgets at Statehouse

COLUMBUS, Ohio (WSYX) — The directors of the state departments in charge of unemployment assistance and pandemic health orders testified before the House Finance Committee on Wednesday, in a procedural step towards passing a state budget by summertime.

In the midst of a pandemic that has laid bare the weaknesses or controversies of those departments, lawmakers used the opportunity to drill both directors on those shortcomings.

The Ohio Department of Jobs and Family Services is proposing a biennial budget of more than $8.5 billion; in 2022, that would mark a 6.6% increase over the prior year budget — much of it meant to support new employees in the Ohio unemployment system, which has bolstered its ranks to match the demand brought on by the coronavirus pandemic.

Director Kimberly Henderson noted that unemployment claims shot up 2,700% in 2020, outpacing the three worst prior years on record — combined. However, $331 million paid out of the Pandemic Unemployment Assistance program was on fraudulent claims that went undiscovered until after payment.

"We do expect that number to grow," Henderson admitted, noting that the federally-funded PUA program was mounted in a matter of weeks and has fewer safeguards built in. "On the regular unemployment side, the number is much smaller."

Rep. Jon Cross (R-Kenton) pressed the issue and noted his constituents "want to know what's going on."

"It's happened, money's been issued and we're trying to stop it. But are we going to be liable?" Cross asked. "Are we on the hook for that?"

Henderson said the state will not be faulted by the federal government for paying the fraudulent claims. That does not mean there is no negative impact of the fraud.

"On the regular unemployment side — regrettably — the taxes that employers must pay in the unemployment system are going to be impacted," Henderson noted, including a 0.5% unemployment tax increase in her budget.

The Ohio Department of Health and its director Stephanie McCloud, who has only been on the job since November, are requesting a two-year budget of more than $2 billion, which actually marks a decrease from the previous budget — state documents attribute that to a rise in federal funding during the COVID-19 pandemic.

With the reductions in spending, legislators in the Finance Committee on Wednesday turned instead to questions over the vaccination process and who is prioritized to receive a shot.

"(The Department of Public Safety) is still very interested in making sure all our first responders are covered," noted Rep. Haraz Ghanbari (R-Perrysburg), asking why police had not been among those first eligible for the COVID vaccine.

"The elderly were prioritized because 65 and older makes up 87% of our mortality table," McCloud explained. "Not by occupation, not by anything else other than age."

Rep. Allison Russo (D-Columbus) pressed McCloud on how the budget request for 2022-2023 could help Ohio get its vaccines out quicker to reach herd immunity, noting that certain counties have had problems effectively distributing their doses or getting enough supply.

"I would argue our local health districts are doing fantastic. We have given them very difficult populations to address," McCloud responded. "We are helping some of those counties. We're providing additional nursing staff to them, if they are struggling."

Both budgets will continue debate in the House and Senate for the next several months, before the state's budget deadline approaches at midnight on July 1st.