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Incoming DES director to inherit issues in the agency

Governor-Elect Katie Hobbs has appointed Angie Rodgers to take over DES. The agency says thousands of Arizonans were overpaid unemployment benefits in the pandemic.

ARIZONA, USA — Governor-elect Katie Hobbs is continuing to announce new positions to fill her cabinet come the start of her administration in 2023. 

Among the new names announced is Angie Rodgers, whom Hobbs' has tapped to take over the Department of Economic Security, the agency in charge of things like unemployment benefits, welfare and protecting vulnerable communities. 

It's an agency that's never been more in demand in its history, than during the height of the pandemic. Issues that started years ago with the agency, still continue, and will be part of what Rodgers inherits. 

'I feel helpless' 

Six stacks of paperwork fill Debbie Mulgrew's coffee table at her Mesa home. That's not counting the folder next to her filled with detailed notes of her correspondence with DES. 

"Most of these packets I don't understand what they're saying, they're in DES language," Mulgrew said referencing the piles of papers sent to her by the agency. 

It's continued confusion for Mulgrew, who was told she owes thousands back to DES after applying for and receiving some help during the pandemic. 

"I feel helpless, hopeless, and very angry and afraid. I don't have $13,080 to pay back to DES," Mulgrew said. 

Back in March of 2020, Mulgrew's contract job shut down in the pandemic. After weeks of waiting to hear from DES, she said an employee at the agency told her she didn't qualify for regular unemployment benefits, but said Mulgrew would qualify for Pandemic Unemployment Assistance (PUA), the federal pandemic-era jobless benefits. 

Mulgrew's paperwork shows, she did qualify and she said she did receive some benefits. 

"That's why they passed the relief packages for people who were contract, part-time workers, who weren't eligible for unemployment," Mulgrew said. "That's what I thought." 

Months later, DES would tell her she didn't qualify for PUA, and should qualify for regular unemployment benefits, which she was already told she didn't qualify for. 

Now, Mulgrew's being told she has to pay back money she already spent on things like rent, utilities and groceries, so she's appealing DES's decision.

Mulgrew said after speaking with Community Legal Services, she's still confident that she did qualify for PUA. 

"I don't have that kind of money to pay back to the state for something that I was told I was eligible for and that they sent me," Mulgrew said. 

RELATED: While Arizona just started issuing unemployment overpayment waivers last month, Michigan has waived more than $555 million

Thousands of Arizonans overpaid by DES

Mulgrew is among thousands of Arizonans that DES has said the agency "overpaid", equating to millions the department has to either recoup or waive, in certain situations. 

RELATED: 'The agency is a disaster': DES asking thousands of Arizonans to pay back their unemployment benefits

"I like to believe that they did the best they could, during this pandemic crisis...I think the takeaway is that mistakes were made, probably by applicants, and definitely by DES employees," Mulgrew said. "And we have to figure out a way to move on from that without dragging it out into more expense, more heartache for people." 

In addition to the thousands, DES has already determined they "overpaid", the Arizona Auditor General reported in November another 108,000 Arizonans might have been overpaid by DES, but the agency hasn't determined if it had or not yet. 

RELATED: Report: Arizona DES needs to be more responsive

That's on top of more than $4 billion paid out to what DES says is fraudulent claims, reporting more than $1 billion has been recouped. 

Incoming director will inherit issues

These issues are among the things Rodgers will inherit when she takes over the role from current DES Director Michael Wisehart. 

"If a new director coming in, can step into her position and not lose her compassion because she's working with people who are in need, usually through no fault of their own, that's the best thing she could do," Mulgrew said. 

Rodgers has been the head of the Arizona Food Bank Network for a decade. 

In that role, she wrote letters and op-eds in the Arizona Republic. Among those op-eds is one from March 2021, where Rodgers called on DES, an agency she worked in before, to cut red tape interfering with older Arizonans from accessing SNAP benefits. 

Earlier this month, she also spoke with 12News about the impact of free meals for Arizona students. 

"Kids do better in school when they're fed, they miss less school when they are fed, schools provide more stability for kids, they get better meal quality at schools," Rodgers said. 

In a statement, Rodgers said she's excited about the new role at DES. 

"I am excited to be appointed to Governor-elect Hobbs' Cabinet as the Director of the Department of Economic Security focused on improving the outcomes for children, families and employees. Together, with the communities we serve, we will create an Arizona that works for all of us," Rodgers said in the statement. 

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