Officials spar over investment to overhaul New Jersey’s unemployment system

(The Center Square) – The New Jersey Department of Labor needs $200 million for a complete upgrade of the system, according to an NJ.com report, but Gov. Phil Murphy doesn’t appear to be sold on the investment.

According to reports, the governor’s $44.8 billion budget proposal that he unveiled this week includes $7.75 million for upgrades to the state’s unemployment system. During a Wednesday news conference, Murphy said the allocated amount is “realistic, inside of this fiscal year,” according to a transcript.

“Remember, this is a one-year budget. That is absolutely needed here,” the governor added. Referencing Department of Labor Commissioner Rob Asaro-Angelo, Murphy said, “doing a complete overhaul at the state level, in the absence of a federal overhaul to the unemployment benefits system is, at least to some extent, throwing good money after bad.”

Earlier this month, U.S. Sen. Ron Wyden, D-Ore., introduced a measure to spend $500 million to standardize state unemployment systems.

“The feds need to boil the system down to its essential parts and rebuild it in a 21st Century reality,” the governor added. “I think the number in our budget is a reflection of what we think is the right, prudent thing to do to make sure we stay ahead of the game. And my guess is if the feds ultimately do boil it down and rebuild it from scratch, we will then want to be more heroic on our side. But I don’t want to waste money in the meantime.”

The response didn’t sit well with state Sen. Anthony Bucco, R-Boonton, who said upgrading the unemployment system should be a higher priority than other spending initiatives in the budget proposal.

“It defies belief that Governor Murphy would say it’s a ‘waste’ of money to fix our unemployment system for those who need quick access to the benefits they earned to survive,” Bucco said in a news release. “It’s shocking that the governor is willing to sit back and wait while people are suffering when there’s no indication that federal action is on the horizon.

“Governor Murphy has a multi-billion dollar surplus already banked and is likely to get another $6 billion in federal aid in the coming weeks,” Bucco added. “He’s proposing to increase spending by nearly 10%, but investing in unemployment system upgrades is where he suddenly draws the line. It’s an insult to every New Jerseyan.”

Earlier this month, the Department of Labor and Workforce Development said it received more than 2 million initial applications for unemployment in the past 11 months, more than at any other point previously. “Underemployed workers” received $22.4 billion in benefits since mid-March, an average of $15,295 per claimant, officials said.

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