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DOES reports sharp improvements in unemployment processing; cautions on Paid Family Leave solvency
Summary
DOES told the committee UI adjudication backlog is down to 26 claims after upgrades, reported large FY25 benefit totals, and warned that the Paid Family Leave trust could face structural imbalance if benefit outlays outpace revenue by FY27 Q4.
Department of Employment Services officials reported substantial progress resolving the COVID-era unemployment claims backlog and offered numbers to support funding discussions. "We're down to 26 in terms of our backlog in unemployment insurance," Director Eunique Morris Hughes said, attributing improvements to staff efforts and operational changes. In FY25, DOES adjudicated over 37,000 initial UI claims, paying roughly $172 million in benefits and securing about $128.5 million in UI tax collections.
Hughes also raised a caution about Paid Family Leave solvency: PFL paid large volumes of benefits in FY25 (over $148.7 million in FY25; near-term collections were noted) and increased usage could create a structural imbalance in the fund. "If we're not generating enough revenue, we're going to be in a position where we won't have enough," she said, recommending a close review by FY27 Q4 of outlays and fund balance and noting statutory triggers that could require benefit adjustments. The committee said it will use this information in upcoming budget deliberations.
