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California assembly panel reviews EDD Next modernization and whether EDD is ready for the next recession

California State Assembly Budget Subcommittee No. 5 on State Administration · February 24, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The Legislative Analyst’s Office and Employment Development Department told Assembly Budget Subcommittee No. 5 that technology and process improvements have materially improved EDD’s capacity since 2020, but legacy COBOL systems and recent scope changes in the EDD Next project leave identifiable risks ahead of a future downturn.

The California State Assembly Budget Subcommittee No. 5 on State Administration heard Tuesday that the Employment Development Department (EDD) has made measurable customer-service and technology improvements, but lingering legacy systems and recent project changes pose risks if another recession forces a sudden surge in claims.

At an informational hearing, Charles Alamo of the Legislative Analyst’s Office (LAO) outlined the state’s three largest worker benefit programs—unemployment insurance (UI), disability insurance (DI) and paid family leave (PFL)—and traced EDD’s modernization efforts from early attempts in 2003 through the current EDD Next program. "The state is in a much better position to be prepared for heightened workload during a recession," Alamo told the committee, while warning that the most complex elements of the modernization, including the integrated claims management system (ICMS), are only just beginning.

Amy Faulkner, EDD’s chief deputy director, told the panel the department is "prepared for…

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