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Getting Ready for the Next Recession

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Presentation on theme: "Getting Ready for the Next Recession"— Presentation transcript:

1 Getting Ready for the Next Recession
2016 National UI Directors’ Conference and IT/Legal Issues Forum New Orleans, LA Michelle introduces panelists

2 Plan Ahead Use lessons learned from last recession. The problem is memories are short and staff turnover is an issue – those who went through and learned lessons from the last recession may not be around to share their knowledge. Michelle: In each of these states, the workload from mid-2008 to the end of 2009 increased by at least 100%. Oregon went from an average of 49 K continued claims to over 108 K each week. Nebraska went from just under 10 K to about 20 K. Indiana moved from just under 60 K to over 128 K each week. The administration of such a significant shift is incredible. To walk us through what did happen in hopes that it can prepare us for what could happen, we’d like to focus on 5 primary areas today: Processes, Technology, Staffing, Funding, and Communication. -- Data Source: DOL Quarterly Data Summary for and Weeks claimed past 12 months / 52 Benefits paid past 12 months / 52

3 Processes How is the economic downturn manifesting in different regions? Coordination with one-stop centers regarding influx of UI claimants in field office? How to implement and track extensions of benefits? David and Evan to speak to this theme

4 Technology Update to phone system routing options for better direction of questions and common information? Ways to increase self-service delivery? Inventory of agency equipment? Josh to speak to this theme

5 Staffing In evaluating current job duties or classifications, are the right staff doing the right work? Instead of hiring, should we temporarily alter the work duties? How are we using existing seasonal and part- time staff? How quickly can the staff be trained? David to speak to this theme Questions from Survey What are your thoughts on staffing up with in-house talent versus contract labor? How to right size an organization? In non-recessionary years we tend to cut positions leaving us short handed when the economy worsens. Does your state have a hiring freeze and what hurdles do you need to jump over to bring on new staff?

6 Funding How much money is needed? Where is the money coming from?
Is the agency communicating with the state administrative services or fiscal office regarding access to funding quickly? Josh to speak to this theme Questions from Survey: How do other states handle borrowing and private bonding? Will DOL implement more aggressive steps to require that Title XII debt is paid back and for states to build their trust fund to minimum adequate balances?

7 Communication What information needs to be communicated?
When and to whom (e.g., state mail services, IT staff)? Need for additional lines of communication (e.g., phone lines, boxes, extended hours) Evan to speak to this theme

8 Buckle up – will be a bumpy ride; don’t react too quickly – consider all options before actions.
--- Be patient and it will eventually end, even though at times it doesn’t seem like it. Questions for the Group (Michelle to moderate) National Activity Is NASWA or DOL pushing Congress to modernize extended benefits system to avoid the mess of multiple tiers of emergency benefits? Does NASWA or USDOL have ready a “Best Practice” type document ready to release in the event of recessions to help states plan based on what we learned from the 2008 Great Recession? Why is there not a standard benefit plan for recessions? What can states do to work more closely with USDOL, NASWA, and anyone else who can lobby on our behalf to make manageable decisions about extensions (avoiding tiers, retroactivity, sequestration, etc.)? Forecasting for Next Recession What are your economic forecasters telling you now about how long you might have to gear up? What are the determining factors for knowing when your state is in a recession? Can the nature of the recession (e.g., industries involved) be known when the recession begins?

9 Contact Information Michelle Beebe UI Director Utah Department of Workforce Services David Gerstenfeld Division Director for Unemployment Insurance Oregon Employment Department Evan Littrell Unemployment Insurance Benefits Administrator Nebraska Department of Labor Josh Richardson Chief Operating Officer Indiana Department of Workforce Development


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