PHOENIX — As of Monday, a new director is at the helm of Arizona’s Department of Economic Security.
Gov. Katie Hobbs appointed Angie Rodgers to fill the role at the state agency, which has never been more in demand in its history than the pandemic.
However, issues that came to light nearly three years ago are still plaguing DES today and the people who asked for help years ago.
‘It’s a nightmare for a lot of people’
For the past six months, 12News has reported on people being sent letters by DES saying they were “overpaid” pandemic-era unemployment benefits.
Some of those who have received letters have sought help from Community Legal Services, a nonprofit law firm.
“It’s a nightmare for a lot of people,” said Nina Targovnik, a senior staff attorney with Community Legal Services.
As of DES’ latest available numbers, 88,000 Arizonans might have been overpaid by DES. About 56,000 of those people are considered “non-fraud” overpayments by the department, with the remaining 32,000 being considered “fraud” overpayments.
The notices come to people stating they need to pay back benefits they previously received.
“People who made $5,000, before the pandemic, got $20,000, over the course of the pandemic, don't have that money to pay back because they used it to live on,” Targovnik said.
‘The stakes are higher now’
Targovnik has handled unemployment cases for Community Legal Services for years, but said it’s been over the past six months or so that she’s noticed these overpayment cases coming through.
“The stakes are higher now. In 2008, when the economy tanked, you know, the extra money was like $25 a week. At the beginning of the pandemic, the extra money was $600 a week,” Targovnik said.
DES is required to recoup the benefits it overpaid, or can waive the money in certain situations.
Since November, DES said 4,100 Arizonans have had their Pandemic Unemployment Assistance (PUA) overpayments waived.
However, Targovnik has seen clients who likely shouldn’t have qualified for the benefits, being told they were overpaid, when there was nothing intentionally done by people to get the jobless benefits.
“It’s very stressful, you know, to be told that all of a sudden you owe $20,000, most people can't afford to pay that back when they thought that they were actually eligible, and then to be told that it was fraud on top of it,” Targovnik said.
Targovnik said some clients have been getting communication suggesting they apply for a waiver if their overpayment is classified as an “administrative” overpayment.
“DES made all these mistakes, they need to rectify the situation, and, you know, help these people out,” Targovnik said.
However, Targovnik said getting that help hasn’t been easy.
Targovnik would like to see another level of trained employees at DES that could be contacted to look over the cases and answer questions to try and cut down on the number of hearings held to deal with these overpayment cases.
“Whenever we've tried to talk to them, they're not interested in making it easier for our clients. So we have all these hearings. They're very difficult to deal with,” Targovnik said.
As for general advice for those who have received an overpayment notice, Targovnik suggests people appeal any “fraud” or “non-fraud” overpayments.
“That at least can try and get the classification changed,” Targovnik said. “If it’s classified as administrative, then I would apply for a waiver.”
A new director
With Rodgers taking over DES, Targovnik is hoping to see change at the state agency including more transparency, a new computer system, and more staff hired and trained.
“They really need to be responsive to the people who are using their services,” Targovnik said.
12News has requested an interview with Rodgers, and we’re waiting on a time from DES to speak with her.