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Officials brief JITOC on unemployment insurance modernization; timeline pushed to 2026, fraud modules deployed

5720518 · August 26, 2025

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Summary

Staff and fiscal office advisers told JITOC that the state’s unemployment insurance (UI) modernization project moved its implementation timeline one year, that fraud prevention modules are being used, and that legacy data migration and business rules are a substantial implementation challenge.

State IT and fiscal advisers told the Joint Information Technology Oversight Committee on Aug. 26 that the state’s unemployment insurance modernization project has been extended and that the team is actively addressing legacy data, fraud prevention, and integration challenges.

Rick Sagal and Lisa Gobin of the Joint Fiscal Office briefed members that the UI project’s timetable had been moved from a July 1, 2025, delivery to July 1, 2026, for a key implementation milestone. Lisa Gobin said the state combined originally planned phases into a single delivery and that the vendor approach includes a fraud‑prevention module described in the briefing as “FAST.” Gobin also said the project team is taking steps to clean legacy data and to define business rules because data in the decades‑old legacy system must be reconciled with tighter controls in the new system.

Committee members raised longstanding concerns about improper payments and fraud. Senator Randy Brock reminded the committee that a 10‑year history had shown about $55 million in improper or questionable payments; members asked JITOC staff to put fraud and fraud‑prevention work on the committee’s oversight agenda for deeper review. Gobin said the project team has included fraud prevention and that the state has been using a vendor approach similar to other successful state projects.

No appropriation or formal approval action was taken by the committee at the meeting. Staff said they would continue oversight work and can return with more detailed materials and vendor documentation on request.