Wednesday, October 23, 2013

Computer Problems for 300,000 claims

1. Jobless

2.  Category of problem/issue identified in article: Economy

3. Level of problem/issue: State level

4. The article concerns a problem/issue that individuals/families face

5. Deloitte hired by the state of California has affected individuals/families benefits because of computer delays.

6.    The state of California should have done some more research before hiring the company Deloitte to upgrade their Employment Development Department. Deloitte came in doubled their estimate when all said and done with their upgrade, costing California's taxpayers $110 million dollars for a software program that has major bugs. Why would you pay $110 million dollars for something that only works 70-80% of the time and costing many workers to go into overtime to finish the other 20%? To answer that, California should have asked Massachusetts, Pennsylvania, and/or Florida before hiring Deloitte because those states could have told California that its not worth hiring them unless they like spending more and more money for Deloitte to fix their software problems that should have been fixed in the first place. Taxpayers of California have to be wondering why is my state is spending so much money to an agency that doesn't perform to their standards as said in the agreement?
        Enough people complained or had the same thought to make lawmakers want answers from Deloitte for why the budget had grown by more than $30 million from the original estimate for California and why the software is still plagues with many of the same issues that it started with. California's EDD is the largest insurance program for the unemployed in our country. If California does get everything up and running smoothly for the Employment Development Department then it can be a good example for other states to follow for their benefits program. Until then, California has a lot of issues to work out with Deloitte to fix their fast growing employment rate with the number of applicants that are still waiting for their benefits.

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