Press Release
PEGGY MAST
785/296-7685

Rep. Mast Concerned about Failures of Labor Department
Topeka - The Legislative Division of Post Audit presented its findings today to the Joint Legislative Post Audit Committee regarding the Kansas Department of Labor's administration of the state's unemployment insurance program. Some of the post audit findings included:

  • Kansas has the nation's highest overpayment rate in 2003, 2004, and 2005.

  • The Kansas Department of Labor issued $115.2 millions in overpayments in 2005; 45% of the $256.1 million paid out in unemployment insurance were overpayments.

  • The Kansas Department of Labor is responsible for a 29% increase in overpayments since 2002.

  • Dept of Labor Secretary Jim Gardner widened the loophole that allows some individuals receiving unemployment to abstain from Job Services registration. The regulation is contrary to Kansas law, which requires the Job Services registration of every person receiving unemployment insurance. Of the 486 benefit payments reviewed by LPA Investigators, 232 or 47% were flawed.

    Joint Committee Chairman Rep. Peggy Mast said she was stunned and concerned by what she learned.

    "The post audit findings lead me to believe we are failing Kansans who need our help the most and failing Kansas businesses by not being good stewards of the money they pay into the unemployment insurance fund," said Chairman Mast. "Unemployed Kansans needs more than a temporary handout -- they need a hand up to a good paying job."

    Fellow Joint Committee member Rep. John Grange and Rep. Steve Brunk, chairman of the House Commerce and Labor Committee, shared similar concerns to Rep. Mast regarding state agencies performance.

    Chairman Mast and Chairman Brunk said the problems brought to light today will not go unaddressed.

    "Part of my responsibility to the taxpayers is to make sure their tax dollars are well spent -- and that our government officials are doing their jobs -- and that I will not stop fighting to make sure these issues are addressed in a satisfactory manner," added Mast.

    Their House committees will review the audit in-depth and make recommendations for broad reform.

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