Report 2020-128/628.1 Recommendation Responses
Report 2020-128/628.1: Employment Development Department: EDD's Poor Planning and Ineffective Management Left It Unprepared to Assist Californians Unemployed by COVID‑19 Shutdowns (Release Date: January 2021)
Recommendation for Legislative Action
To ensure that EDD is better prepared to provide effective services and assistance to Californians during future economic downturns, the Legislature should amend state law to require EDD to develop a recession plan that takes into account the lessons learned from previous economic downturns, including the pandemic. At a minimum, the Legislature should require EDD's plan to include the following:
-The indicators EDD will monitor and use to project the likely upcoming workload that it will face.
-The steps EDD will take to address increases in its workload, such as cross-training non-UI staff, changing its staffing levels, prioritizing specific tasks, and adjusting the way it performs certain work.
-The altered policies or procedures that EDD will activate if a rise in UI claims becomes significant enough to warrant that step.
The Legislature should require EDD to develop the plan within 12 months of the effective date of the related change to state law. To address new developments in UI processes, programs, or other relevant conditions, the Legislature should require EDD to update its recession plan at least every three years thereafter.
Description of Legislative Action
SB 390 (Chapter 543, Statutes of 2021) requires EDD to develop and, upon appropriation by the Legislature, implement a recession plan to prepare for an increase in unemployment insurance compensation benefits claims due to an economic recession. The plan shall detail how to respond to economic downturns with a predetermined strategy that has considered the full effect on EDD's operations, and include, but not be limited to, identifying the lessons learned from previous economic downturns, identifying ways to improve self-serve services to avoid long wait times to speak to staff, and enhancing claims processing tools to ensure that the EDD's identity verification processes are as robust as possible. EDD is required to provide a copy of the recession plan to specified legislative committees and the Department of Finance by March 1, 2022, and to update the recession plan and provide a copy to specified legislative committees and Finance every second year thereafter.
- Legislative Action Current As-of: October 2021
California State Auditor's Assessment of Status: Legislation Enacted
Description of Legislative Action
AB 360 (Patterson, et. al., 2021) would, among other provisions, require EDD to develop a recession plan so that it is well prepared to provide services during future economic downturns.
SB 232 (Nielsen, 2021) would, in part, would require EDD to create model workload projections that account for possible scenarios that may cause a sudden increase in unemployment insurance claims. The bill would require the workload projection assessments to occur quarterly in order for EDD to plan staffing adjustments in accordance with the likelihood of those scenarios. EDD would also be required to have a contingency plan for less likely scenarios that may have a significant impact on the department's workload.
SB 390 (Laird, 2021) would require EDD to develop and, upon appropriation by the Legislature, implement a comprehensive plan to prepare for an increase in unemployment insurance compensation benefits claims due to an economic recession. The plan would be required to detail how to respond to economic downturns with a predetermined strategy that has considered the full effect on EDD's operations, and include, but not be limited to, identifying the lessons learned from previous economic downturns, identifying ways to improve self-serve services to avoid long wait times to speak to staff, and enhancing claims processing tools to ensure that EDD's identity verification processes are as robust as possible. The bill would require EDD to provide a copy of the comprehensive plan to the Joint Legislative Budget Committee and the Department of Finance by March 1, 2022, and to update the comprehensive plan and provide a copy to the Joint Legislative Budget Committee and the Department of Finance every second year thereafter.
- Legislative Action Current As-of: July 2021
California State Auditor's Assessment of Status: Legislation Introduced
Description of Legislative Action
AB 360 (Patterson, et. al., 2021) would, among other provisions, require EDD to develop a recession plan so that it is well prepared to provide services during future economic downturns.
SB 390 (Laird, 2021) would require EDD to develop and, upon appropriation by the Legislature, implement a comprehensive plan to prepare for an increase in unemployment insurance compensation benefits claims due to an economic recession. The plan would be required to detail how to respond to economic downturns with a predetermined strategy that has considered the full effect on EDD's operations, and include, but not be limited to, identifying the lessons learned from previous economic downturns, identifying ways to improve self-serve services to avoid long wait times to speak to staff, and enhancing claims processing tools to ensure that EDD's identity verification processes are as robust as possible. The bill would require EDD to provide a copy of the comprehensive plan to the Joint Legislative Budget Committee and the Department of Finance by March 1, 2022, and to update the comprehensive plan and provide a copy to the Joint Legislative Budget Committee and the Department of Finance every 2nd year thereafter.
- Legislative Action Current As-of: May 2021
California State Auditor's Assessment of Status: Legislation Introduced
Description of Legislative Action
SB 390 (Laird) would require EDD to develop and, upon appropriation by the Legislature, implement a comprehensive plan to prepare for an increase in unemployment insurance compensation benefits claims due to an economic recession. The plan would be required to detail how to respond to economic downturns with a predetermined strategy that has considered the full effect on EDD's operations, and include, but not be limited to, identifying the lessons learned from previous economic downturns, identifying ways to improve self-serve services to avoid long wait times to speak to staff, and enhancing claims processing tools to ensure that EDD's identity verification processes are as robust as possible. The bill would require EDD to provide a copy of the comprehensive plan to the Joint Legislative Budget Committee and the Department of Finance by March 1, 2022, and to update the comprehensive plan and provide a copy to the Joint Legislative Budget Committee and the Department of Finance every 2nd year thereafter.
- Legislative Action Current As-of: March 2021