Gov. Katie Hobbs says problems with Arizona's unemployment system are the result of federal funding cuts, not a new benefits tool launched by the state last month. But many people who rely on the system say otherwise.
For nearly a month, KJZZ has reported on Arizonans who said they’ve had problems filing claims or receiving unemployment payments since the Department of Economic Security debuted the CACTUS benefits portal on Sept. 7.
Since the launch, hundreds of applicants have gone to social media and local news stations to complain about glitches and delayed — or missing — payments, saying it is nearly impossible to connect with department representatives to get help resolving the issues.
Hobbs, who previously said she wasn’t aware of issues in the weeks after CACTUS went live, now says the problems are the result of federal funding cuts that led the department to cut hundreds of employees.
“And so it's created this backlog,” Hobbs said, referring to the department layoffs. “So there is also a new system. The issues are not being caused by the new systems.”
Hobbs said her administration is currently looking at options to address that backlog.
“And I think also not just put a Band-Aid on it, so the backlog is gone today but back tomorrow,” Hobbs said. “But we really are looking at how we can fix it, and I know it's causing a lot of frustration for people, and we're trying to do everything that we can.”
That backlog, and the ongoing issues, comes as hundreds of Arizonans prepare to go without other benefits, including food assistance, due to the government shutdown.
Users blame CACTUS
Arizonans who spoke with KJZZ blamed the new system for their issues, saying many of their problems coincided with the program’s debut in September.
“I'm like, you've got to be kidding me,” said Tolleson resident Sommers Bennett, who said an overpayment issue she resolved months ago popped back up after CACTUS went live.
And there is some data to back up those claims.
The Arizona Ombudsman Citizens' Aide received 72 complaints about the state’s unemployment system in the month after CACTUS went live — nearly three times the 26 complaints it received during the same period last year.
The ombudsman is an independent state office that assists citizens who believe they are being treated unfairly by state agencies or regulators.
Hobbs said she doesn’t believe there is a correlation between the increase in complaints and the new system.
“I think it was just coincidental timing, honestly,” Hobbs said. “We don't see that they're tied.”
Like Hobbs, the Department of Economic Security previously blamed federal budget cuts and staffing shortages, though it eventually acknowledged an issue with the new system flagging false overpayments for some users.
But critics think the two issues are intertwined and questioned why state officials pushed forward with the CACTUS launch in September after the layoffs took place months earlier.
“Why do you want to put a new system in that’s going to affect thousands upon thousands of people when you’re going to have 500 people laid off, and you’re going to take quite a few of them from the unemployment insurance agency department?” said Jeff Richards, who has faced problems obtaining his benefits through the new system.
Hobbs indicated DES could juggle its remaining staff to address ongoing issues with unemployment benefits.
"We're looking at options,” she said. “Obviously, DES is going to be the agency that's most strapped by all of these other concerns with federal funding and people calling in wondering what's happening to their benefits, and so we're looking to see if there's an option to do that.”
