Labor secretary seeks resources as UI backlog, audits and a proposed delay to paid family leave draw scrutiny

Maryland Department of Labor leaders told the Education and Economic Development Subcommittee in Annapolis that the department needs additional staff and funding to address a backlog of unemployment insurance claims, unresolved audit findings, and to implement workforce investments — while advocates and labor unions urged the committee not to delay the state’s Family and Medical Leave Insurance (FAMLI) program.

Scott Benson, the DLS analyst presenting the department overview, said the fiscal 2026 operating allowance increases by $102,900,000 (16.6%) to $722,300,000 and that the Office of Unemployment Insurance (OUI) allowance rises by $21,800,000 to $136,500,000, in part to add 125 regular positions to transition call center work in‑house as a contract with Accenture ends. Benson also flagged unresolved fiscal compliance issues from an Office of Legislative Audits (OLA) review, including $204,700,000 in federal fund accrual entries the department could not fully support, and a repeat audit finding that kept $100,000 of general funds restricted in fiscal 2024.

Benson summarized performance measures and the programmatic outlook: COVID‑era claim volumes peaked and continue to affect operations (calendar 2024 saw 1,200,000 claims), the federal timeliness…