The Arizona Department of Economic Security has acknowledged for the first time that a glitch in the state’s new unemployment system is preventing some Arizonans from receiving benefits.
“DES is aware of an issue impacting a very limited number of claimants who have recently addressed their prior overpayment of benefit,” DES spokesman Brett Bezio said in an email. “We understand how frustrating this can be for those experiencing this issue and are actively working to resolve it as quickly as possible.”
Bezio issued the statement after KJZZ reported that Tolleson resident Sommers Bennett said she lost her car due to the glitch. Bennett said she hadn’t received benefits for weeks after the system flagged an overpayment on her account that didn’t exist.
After numerous conversations with DES representatives, Bennett said the department acknowledged the issue but would not give her a timeline for a resolution.
“They're telling me they see that I don't owe anything, but because it's a new system, there's a glitch, and it's not just me that's been affected,” Bennett said last week. “There's nothing that they can do about it until the CACTUS people fix it.”
While he acknowledged the problem, Bezio did not provide a timeline to correct it.
“Please note that some claims also need to be adjudicated by staff on a case-by-case basis, if the information on the claim requires fact-finding to confirm eligibility for benefits and prior to benefits being paid,” he said.
In the meantime, Bennett said she still has not received payments.
DES did not respond to a request for recommendations for people dealing with the overpayment issue who say they cannot reach the department for help.
Gov. Katie Hobbs said she still isn’t aware of any issues with the system after giving KJZZ a similar answer last week.
“I’m going to have to get back to you, because I have not been made aware of this at all,” she said.
Other problems
Outside of the overpayment glitch, DES claims the new Cactus system is working well and provides unemployed Arizonans with a “modernized platform to to track claim information more easily and use streamlined self-service tools, creating a more accessible experience.”
“In the first two benefit weeks, over 60,000 claims were filed, and more than $13.3 million in UI benefits was paid to claimants,” Bezio said. “This is consistent with the number of claimants filing before CACTUS was implemented, indicating that the majority of individuals are able to successfully file and receive payment without complication.”
But the people who actually use the system dispute that characterization.
Several Arizonans seeking unemployment benefits from the state told KJZZ they faced issues unrelated to the overpayment problem and went weeks without payments.
That includes Matt Gerhards, who said he was unable to submit a claim due to technical issues with the Cactus program. Gerhards said his payments were eventually processed after KJZZ reported on his situation.
Eric Wilson said he is owed 10 weeks of unemployment benefits and cannot reach the department for help, saying a hotline automated message says no one is available to answer due to high call volume.
“It’s just maddening,” he said.
The Department of Economic Security’s unemployment insurance data dashboard backs up the department’s claim that the overall number of payments and processed claims in the weeks since the Cactus launch is consistent with overall trends this year.
However, there is some indication that the number of new claims processed has dropped off since the launch.
According to department data, there has been an average of 3,572 new unemployment claims filed weekly this year through the end of August. In the first week after CACTUS went into effect, there were 3,792 new claims filed. But, in the next three weeks, the department averaged 2,620 new claims each week.
Bezio said the department is dealing with staff reductions resulting from a cut in federal funding earlier this year.
“However, this reduction has impacted our capacity to serve Arizonans, and individuals who need additional review on unemployment insurance claims or need to contact our call center may experience longer wait times. We appreciate the public’s patience at this time,” he said.
The data shows that the department is answering less calls for assistance in recent weeks.
In the first week of October, the department’s call center answered 1,571 calls after averaging over 6,500 calls per week through the end of August this year, according to the data dashboard.
