Image Credit: The Midwesterner/Esteban Clark-Braendle
Michigan’s $78 million overhaul of its unemployment software is more than a year behind schedule, and will cost an additional $20 million to complete, frustrated lawmakers learned last week.
About nine months after the Unemployment Framework for Automated Claim & Tax Services was expected to go live, Michigan Unemployment Insurance Agency and contractor Deloitte officials explained on Thursday why it will not fully roll out until 2026.
Officials said the delay will cost another $20 million to continue operating the old system, which has faced multiple lawsuits over false fraud allegations and improper payments during the pandemic. Michigan Advance reported that the $78 million contract with Deloitte started in 2023 and will go live on Sept. 30, 2024.
“The project is on an upward trajectory, was shown significant improvement, and we are now tracking on schedule for a go-live for the employer portion of the project this December and the claimant portion of the system next spring,” David Parent, a managing partner with Deloitte, told lawmakers on the House Appropriations Subcommittee on General Government.
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