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Perdue instructs ESC to waive overpayments, halt deductions


RALEIGH, NC (NEWS RELEASE) — Gov. Bev Perdue today, after further consultation with her legal team and federal officials, instructed the Employment Security Commission to take the following steps regarding overpayments for the period between January 1 and May 16, 2010:

• Immediately halt the deduction of money from unemployment checks that was intended to recoup overpayments in previous checks.
• Immediately halt the cashing of any checks sent in by unemployment benefit recipients who were attempting to pay back overpayments in previous unemployment checks.
• Waive all overpayments from January 1 to May 16, 2010 that resulted from an administrative error, meaning that the recipients are not required to pay anything back.

The Employment Security Commission took this action through two orders, state and Federal, waiving the overpayments.

“The ESC has worked diligently to correct this error,” said ESC Chairman Lynn R. Holmes. “The good news is that claimants affected by the overpayment will no longer have money taken out of their weekly benefits. We are developing a plan to refund to those persons who had already made repayment.”

The ESC continues to negotiate with the U.S. Department of Labor about how to resolve the funding for the overpayments. A comprehensive set of FAQs will be posted to the ESC website later today that should help customers understand how they can be assisted with this matter.

The ESC still needs to review each claim individually. Claimants should still call or email the ESC. Call centers in Raleigh and Charlotte will be assisting customers across the state from 8 a.m.- 8 p.m., Monday thru Friday. The ESC remote services center will also be open on Saturday and Sunday from 8 a.m. - 5 p.m. Claimants can call 1-888-737-0259 or email:

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And a follow up

In Raleigh Monday afternoon, the Governor said enough. Enough embarrassment; enough mis-communication which makes the Governor look bad.

A Team of IT experts is stepping in and doing a thorough review to find the computer glitches which caused the over payments.

Her statement did not rule out other management changes -- could that point to Chairperson Holmes?

Of concern to all taxpayers is her statement that the requirement for repayment of excess funds received is "ludicrous". Why is it ludicrous for people to retrun something for which they were not entitled?

If that's her true belief, all taxpayers need to look closely at whom they vote for in November. Bev needs to get a message from the taxpaying citizens of North Carolina that enough is enough.

In that light, she indicated she had directed ESC to continue negotiations to fund the overpayments. In the end, the taxpayers bear the burden one way or another.

What's next? Those who did not receive overpayments step up to the plate with their demand they be treated equally and be overpaid?

It has to stop somewhere. And someone at the top of state government has to accept accountability for their actions and fall on the sword. In this case, there should be multiple parties,

And that's why the state is

And that's why the state is in a budget crisis. Of course taxes will end up going up at some point to cover this money. I hope the governor doesn't get re-elected. way to spend tax payers money governor Perdue.

What a great solution

Admit overpayments were made.

BUT, if you were overpaid, you do not have to worry about returning the extra money you received which you were not entitled to. I guess all of those who did not receive overpayments will rise up and ask "Where's Mine"?

The Governor will see you through the problem.

Meanwhile, the state will continue to negotiate with the Feds on how to resolve the issue of overpayments with the Feds.

Possible Solutions:

1. In an effort to woo voters, the Feds "write off" the excess payments and say "That's alright; why should you voters suffer due to a government foul up; just remember your Democratic friends at the polls on the 2nd of November". Guess that must mean they crank up the money printing press since the Feds are out of money. Bottom line here is the taxpayers get stuck with the bill. Thanks Bev for letting the taxpayers pick up the tab for another Government screw up.

2. To postpone the inevitable, the Feds agree to allow the $28,000,000 to be deducted from future amounts to be paid to the state for future benefits. That allows the problem to be postponed until after the election. Bottom line is amounts available for future benefits will be reduced thus impacting all benefit recipients. Any receipients want to stand up and say Thanks Governor and ESC Chairperson Holmes? On a positive note, that should allow all benefit recipients to share the pain and not just those who received the excess payments.

3. After losing control of the House and Senate on November 2, a lame duck House and Senate reconvene for a lame duck session. After passing some self serving legislation for all those who failed to be re-elected; and after passing some more give away programs which the Feds do not have the money to fund, they pass a piece of legislation which forgives the overpayment. Bottom Line, the taxpayers take it in the ear again. Thanks Bev and Thanks soon to be out of office Democrats.

The announcement noted there have been computer issues and communication issues. And just as the Governor was embarrassed by the poor performance of the recently departed Revenue Secretary, she gets embarrased by another member of her "Team".

Action Plan:

1. Send Chairperson Holms onto other career opportunities by accepting her hastily written letter of resignation.

2. Send the highly compensated head of data processing and the top 50% of the highly paid programmers onto other career opportunities.

3. Eliminate all of the staff attorney positions.

That should help free up some funds to cover the next hose up.