FRANKFORT, Ky. (WDRB) -- Kentucky Gov. Andy Beshear is proposing a major shakeup of state government to try and fix the unemployment insurance crisis.
Unemployment claims surged during the height of the COVID-19 pandemic, overwhelming a system that was understaffed and using an outdated computer system. It left thousands in limbo waiting for answers about their claims.
Now Beshear wants to merge the Education and Workforce Development Cabinet and the Labor Cabinets to help address the problem.
“We need more permanent fixes to ensure that if we ever go through something like what we have seen, that our unemployment insurance works better,” Beshear said during a news conference Thursday.
Beshear said merging the two cabinets, which are already closely aligned, will produce a larger pool of workers that can be cross-trained to handle a crisis.
“One thing we saw we had to do on this crisis, we had to pull other employees in from other cabinets that didn't necessarily have the same background and weren't necessarily under the same roof,” he said.
Beshear said the merger would also help when applying for federal grants and would improve communication with other agencies and with the legislature.
The merged cabinet would be led by current Labor Secretary Jamie Link. The current acting Education and Workforce Development secretary, Mary Pat Regan, would serve as deputy secretary. Regan replaced Lt. Gov. Jacqueline Coleman, who stepped down in October. Beshear said there will be no layoffs.
“We don't see any reduction in force other than one cabinet secretary, at least in the beginning,” he said. “Remember, part our problem in government right now — like everywhere else — is we're understaffed.”
Beshear said the effort to replace the computer system is moving forward, but it will take two to three years for it to come online. He acknowledged none of the changes will help those still waiting for their claims to be resolved.
“What it means in the next week or two to existing claims, unfortunately, it will not make those go faster,” he said. “But my commitment here is not just to get through those claims but make sure it doesn't happen again.”
The legislature must approve the merger when it returns in January for the 2022 session. Beshear said he has communicated with Senate President Robert Stivers and House Speaker David Osborne. But in a tweet, Senate Minority Floor Leader Damon Thayer said Beshear’s announcement was the “First time I have heard of this.”
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