Legislative update: State’s unemployment system needs to work for those in need

By JIMMY HIGDON
14th District State Senator

Friday, June 19, 2020 — I want to start by saying thanks to all who have taken the time and made the effort to vote. This primary has been a challenge but it looks like we will get through with minimal issues. All that is left to do is await any last votes to be cast/counted and await the final results. With that said let’s look forward to having a normal election in November. The next 4 ½ months will be interesting.

Today it feels like we are moving at a snail’s pace on our course to reopening the state. In recent weeks various businesses have been given the green light to open, with strict guidelines in place to prevent the spread of COVID-19. Among the businesses reopened are entertainment venues such as movie theaters, bowling alleys, and auto racing. Offering the feel and a taste of something of a normal life, fitness centers, campgrounds, libraries, and tours of distilleries have reopened, as well as services critical to our families and communities like Circuit Court Clerks, and childcare centers. It is good to see a semblance of normality. Still, the continued shutdown of areas of our economy, out of work employees, and business owners struggling to meet guidelines must be a focal point of ongoing discussions.

The legislature has taken initiative, making it clear that the voices of Kentuckians are heard. Even though we are unable to take official action until January 2021 (without the governor calling us into a special session), we continue serving our constituents. As I reported to you a couple of weeks ago, the primary focus of the Kentucky General Assembly’s 2020 Interim Session is COVID-19 and its impact on the lives of Kentuckians. The Interim Session will prepare the General Assembly to deal with the COVID-19 issues next year when we return to regular session.

In what may have been the most enlightening moment thus far in the 2020 Interim Session – the Interim Joint Committee on Program Review and Investigations met on June 11. The focal point of the meeting was a discussion on the reopening of Kentucky childcare centers. Some have reopened with strict guidelines. In attendance were numerous childcare center owners and directors who testified before the committee on the struggles they are facing.

“Healthy at Work” requirements include a limitation on the group sizes that our centers are permitted to have. This limitation decreases the number of slots for the centers, which substantially reduces revenue for the programs. Dr. Jennifer Washburn, owner and executive director of iKids Early Childhood Enrichment Center in Marshall County, was a special guest of the committee. She pointed out that group limitations have decreased her revenues by 22 percent.

To meet the health and safety requirements, which are necessary, she has had to increase her staffing by 20 percent, which means additional costs while revenues have plummeted. Dr. Washburn, along with other guests, expressed appreciation for federal funding that has helped them stay afloat. Still, they said there would be many childcare centers that simply will not make it off of the operating table when all of this is over. A poll conducted by the Kentucky Chamber of Commerce among the childcare center community showed that 42 percent of responses indicated their center would close for good.

Melanie Barker, owner of ABC Children’s Academy in Bowling Green, echoed the frustrations expressed by others. Barker detailed how she filed a claim with her insurance company to receive per week of business income following the mandatory shutdown of childcare programs. Her request was denied due to the closure not meeting the insurance company’s protocol. She closed her center based on the state mandate, and not directly due to a positive case of COVID-19 in her center. Barker contacted other centers and determined others were being denied as well, and they were.

Childcare programs provide children with a safe and educational environment. They also offer parents and other caregivers the ability to work and provide for their families. As parents return to work, some struggle to find the childcare they desperately need. Last but not least, these are centers that employ Kentuckians. The closure of the centers leads to higher unemployment rates. Kentucky is experiencing record high levels of unemployment and unprecedented unemployment insurance (UI) claims.

The ramifications of Kentucky’s shutdown and slow reopening will be far-reaching and devastating for many. The testimony from childcare center owners and directors is but one example of that. Upon hearing testimony, many legislators called on the governor to reconsider some restrictions, pointing out that New York State, the state hardest hit by COVID-19, did not close these centers down. Instead, New York and most other states relied on health and safety measures. Keep in mind, when childcare options are unavailable, parents are left to lean on alternative options, such as grandparents, who, ironically, are among the group most susceptible to the virus. I encourage you to visit www.ket.org/legislature/archives/ to watch footage of that committee meeting.

We have all heard the stories of hardships facing Kentucky employees who have been left jobless. Last week, we experienced the magnitude of Kentucky’s current unemployment crisis visually. Over three days, thousands of Kentuckians traveled to Frankfort to receive in-person attention to their unemployment claims. Some have been unresolved since March.

I have recommended that this service should be offered to Kentuckians regionally in unemployment offices across the state. Simply reopen closed Career Centers and make help available regionally. Some people drove over three hours to Frankfort and waited in line for over eight hours, only to be turned away at the end of the day. Their desperation and pain are heartbreaking. I have helped hundreds of unemployed constituents get a call back from unemployment personal. I say thanks to the UI Staff for their dedication and efforts to resolve constituents’ issues. As the list of unserved decreases it allows faster resolution to all remaining on the list.

It’s time that we reopen the economy with a healthy balance of safety measures. One thing for certain is we must make sure our antiquated UI system is updated in order to serve Kentuckians in a timely manner. UI is designed to be a safety net for people who find themselves out of work at no fault of theirs. It is designed to be timely, not 13 weeks later. The new system must be user friendly. The current system is very complicated and very easy to give a wrong answer which puts claims “under investigation.” That is not a term people want to see when they need help. This is a priority of mine. As an employer, I understand the UI system. I continue to pray for these Kentuckians and those who are impacted directly and indirectly by the coronavirus.

I am always eager to hear from you, so please do not hesitate to contact me if you have any thoughts or concerns. You can contact me at jimmy.higdon@lrc.ky.gov or by phone at home 270-692-6945.

It is my hope that by the time this legislative update is published, the unemployment claims from March and April will be resolved. If not, please contact me and I will do my best to assist.

Thank you to our trusted local media that keeps us informed. Please visit your local independent news websites and tune in to your local radio and news networks. They will not let you down. God Bless. Be Safe.

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