Kentucky has awarded a long-awaited contract to replace its decades-old unemployment insurance system.
The state Education and Labor Cabinet reached an agreement with Deloitte Consulting last week to replace the antiquated technology for processing unemployment claims, according to Governor Andy Beshear’s administration.
Cabinet spokeswoman Jill Midkiff said the state’s six-year contract with Deloitte Consulting to develop the replacement system is for $55.5 million. The cost of the new system, including ongoing operations and maintenance expenses, will be supported by $85 million in funding approved by lawmakers.
The project’s timeline will be determined in the next few months by the Office of Unemployment Insurance and Deloitte Consulting. But the state said it anticipates the new system to be fully implemented by 2028. State officials pointed to the complexities in developing the replacement system.
Once operational, the upgraded system will provide easier access for Kentuckians filing jobless claims as well as for staff members who use the system to assist people seeking employment.
Efforts to find a contract partner to replace the aging technology for claims processing ran into delays. In 2021, concerns about cybersecurity caused the state to extend its search. A year later, another solicitation was canceled after the selected vendor failed to sign and return the contract.
The existing system was implemented almost 40 years ago.
Like other states, Kentucky was overwhelmed by record waves of claims for jobless assistance caused by the coronavirus as businesses were locked down to contain the virus’s spread. Tens of thousands of Kentuckians found themselves in limbo for months as they waited for their jobless claims to be processed.
Source: AP
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