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'Helping people just hang on sometimes': New Dept. of Economic Security director

The state's current system to process unemployment claims was launched in 1988 and is still in use today.

PHOENIX — Six months into her new role as the head of the Arizona Department of Economic Security, Director Angie Rodgers said her top two priorities are getting DES modernized and improving accessibility for Arizonans.  

Gov. Katie Hobbs appointed Rodgers to the agency that serves nearly three million Arizonans through a variety of programs. 

"We literally are helping people just hang on sometimes, and I take that very seriously," Rodgers said. 

DES was likely never more in demand in its history 50-year history than during the height of the pandemic as the agency was responsible for distributing both state and federal unemployment benefits. 

Modernizing DES

The state's current system to process unemployment claims was launched in 1988 and is still in use today. 

During the beginning of the pandemic, as thousands of Arizonans sought unemployment benefits from DES, that system had several glitches leading to Arizonans struggling to get the benefits they needed. 

However, Rodgers said, she hopes to see that system replaced by the fall of 2024. 

"There have been attempts to try and modernize that system in the past that didn't go anywhere. So this really is the first time that we're going to be able to replace the existing system, make it better, make it more responsive during times of disaster like we saw during the pandemic," Rodgers said

Improving accessibility 

One of the biggest complaints reported to the Arizona Ombudsman Citizen's Aide and told to 12News for the past three years is how people struggle to get a hold of DES. 

People seeking unemployment benefits describe waiting for hours on hold, not getting clear answers, and not hearing back from DES in a timely manner. 

Behind modernizing DES, Rodgers said her second priority is addressing the accessibility of DES to Arizonans. 

"Making sure that when people call us, when people email us, when people show up at our doors that we're available to them," Rodgers said. 

When 12News asked Rodgers what she'd say to those who are still waiting on answers from DES, Rodgers apologized. 

"First of all, I apologize, right –  I wasn't here, but I definitely apologize," Rodgers said. 

"Second, I would say probably thank you for your patience, it is really hard to be able to move large systems quickly and DES was obviously at that time caught flat-footed with a large number of individuals that needed their support at that time," Rodgers said. "And so we really need to do a better job as we come out of that period, at making sure that again, we have the workforce available to answer the phone calls, that we have the technology that is going to work for our staff, as well as individuals who can just use technology to their advantage." 

More staff needed

DES serves about one in three Arizonans through more than 50 programs, including distributing unemployment benefits. 

In the unemployment division alone, staff work on not just processing unemployment claims, but investigating fraud and are also working to look into overpayments made during the pandemic to Arizonans. 

Last year, a spokesperson told 12News that federal funding had been cut and staff were cut as a result. 

Rodgers said grant monies through the Department of Labor have been able to help keep current staff on. 

Still, Rodgers said she does need more staff that will stay at the department. 

"We need to make sure that when we hire staff, we're hiring the right people for the job that can be with us for a long period of time because those programs are complex, confusing," Rodgers said. "Obviously, individuals come to us with a multitude of circumstances that we have to dissect and translate and be able to plug them into programs. That takes time, that takes an understanding that you can't learn overnight." 

Benefits lost to fraud 

According to the Arizona Auditor General, it's estimated $4 billion was paid out to fraudulent claims by DES during the height of the pandemic that still has not been recouped by the state. 

It's a problem states across the country were hit with as the pandemic unemployment benefits were rolled out. 

"I think that's what happens when you create policy overnight, right?" Rodgers said. "We could have, should have done a better job at the time. But, at the same time, I don't think anybody could have predicted what was happening in March of 2020." 

Rodgers said the agency has recoupled about $1.5 billion through collections and investigations. Those cases, Rodgers said, are being sent to law enforcement partners at the Attorney General's Office. 

"Some of those were from individuals who intentionally were trying to game the system," Rodgers said. "And others were from algorithms, individuals outside of this country even, and so what we're finding is we definitely need to continue the fraud protections that we have."

Tens of thousands of overpayments waived

Thousands of Arizonans are believed to have been overpaid unemployment benefits by DES. 

As of late 2022, the Arizona Auditor General estimated DES had still not yet determined if 108,000 Arizonans have been overpaid. 

Rodgers said DES is working down that number to see who was overpaid and who was not. 

So far, DES reports 81,000 claimants who received Pandemic Unemployment Assitance have been identified as being overpaid. 

More than 75% of those, 62,000 Arizonans, were overpaid through no fault of their own. DES said their overpayments are being waived and those claimants will not have to pay back $215 million. 

"We do need to own up to the errors that were made at that time. Again, that isn't to say that someone intentionally made an error, it's just the volume of individuals, we're trying to process as quickly as we can. I make no excuses about that. But I also recognize that we were on in unprecedented times, and it is really hard work," Rodgers said. 

As for those who are still receiving overpayment notices, Rodgers encouraged people to contact DES

"Get in contact with us, the information that we have in our systems right now might not be complete," Rodgers said. 

Forward to the future

Rodgers is hoping in a year the agency will have a more stable workforce and the process of modernizing antiquated systems will be well underway. 

Recognizing the tough years the agency has been through, Rodgers said hopes to see the department be better in the future. 

"We need to do better. We need to have better systems, we need to make sure that we retain a great workforce and that's what I'm hoping to accomplish," Rodgers said. 

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