The accusation
that fraud and abuse are rampant just isn’t true.
Fraud is a popular buzzword in Augusta these days. If you don’t like a policy, hold a press conference, allege fraud, use the innocent as scapegoats and start an investigation. Don’t worry. You won’t need evidence or the facts to support your case.
The sarcasm in my tone might be funny if it didn’t ring true.
We’ve seen the use of scare tactics to eliminate voting rights, to undercut the safety net, and now the governor has announced it as an excuse to go after unemployed workers. Last week, the governor announced he was going to be cracking down on fraudulent unemployment claims.
As a retired job-service manager for the Maine Department of Labor, I am the first one to say we should stop abuses in the system, if they exist. But let’s deal in the facts, for once.
Unemployment insurance is available for those who qualify. Full weekly benefits for an unemployed worker are lower in Maine than in any other New England state. Maine’s Unemployment Trust Fund is one of the most solvent in the United States and, as a result, our UI tax rate is one of the lowest in the country.
UI benefits are paid for a short period, 26 weeks, unless an extension is implemented. UI extensions are triggered by high unemployment rates. During periods of high unemployment, the claimant must meet additional conditions to qualify for extended UI benefits. While regular UI is state funded, extended benefits are federally funded.
The UI benefit is a bridge to cover a period of difficult economic time for the unemployed worker. But it not only helps that worker; it helps businesses in that worker’s community. UI money is spent to keep food on the table, to put fuel in the heating system, to keep the family in safe housing, etc. Yes, UI is a safety net for many, including the primary recipient.
We have created a system to assist anyone who qualifies to collect unemployment insurance. We must take care not to scare people or make them feel guilty about applying for those benefits. It is a type of insurance, after all, and just like any other insurance, it should be there for any qualifying individual.
As with any service, there is the possibility of fraud. In the case of UI, the fraud has multiple faces. It may occur due to an employer not reporting or under-reporting wages being paid. It may happen because a claimant is not truly able and available for work, and is reporting otherwise or is not reporting earned wages. It is important to address fraud wherever it occurs. No one should be allowed to use any system illegally.
Safety nets must be protected and they must be continuously inspected and verified. Society relies on that. In the case of UI, employers and employees rely on an honest system. At times, we hear about the fraud and abuse of government systems, but the accusation that fraud and abuse are rampant just isn’t true.
There are state government workers whose job it is to investigate fraud and abuse. They do a good job given the tools and funding provided to them. However, cuts to programs in many departments have limited the functions related to ensuring and verifying that the systems are providing services to those who truly qualify. One has only to look at areas throughout state government that need more funding for inspectors and investigators to do their job. Examples are: in the Department of Labor, UI fraud and elevator safety investigators and inspectors; in the Department of Health and Human Services, Medicaid provider and recipient fraud investigators and food prep inspectors; in the Department of Transportation, bridge inspectors; in Public Safety, fire and arson investigators; etc.
In short, many areas in state government are not adequately funded to protect the interests of Maine’s taxpayers and, as a result, may provide increased opportunities for fraud and abuse and, in some circumstances, unsafe situations. State agencies need to do their job. But in order for them to get a clearer picture of fraud and abuse, they need the support of the Legislature and the governor to provide well-trained investigators and fully fund investigative units.
Instead of scapegoating folks in the unemployment lines, let’s work together to find a way to get them back to work.
Sounding the fraud alarm won’t create jobs. Improving the economy will require more than the politics of blame. If we want to put more people back to work, let’s focus on policies that support job creation, not put another target on the backs of our unemployed workers.
Paul Gilbert is the Democratic Representative for Chesterville, Jay, Mercer, New Sharon and Starks. He is a retired job-service manager for the Maine Department of Labor.

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