Senator Eliot Shapleigh - El Paso, Texas

AUSTIN – As many as 82,000 unemployed Texans won't receive an immediate 13-week extension of benefits as they expected because of federal rules and state computer problems, the Texas Workforce Commission said Tuesday.

In addition, the state unemployment insurance system is straining under the weight of the crumbling economy: Texas will have to borrow $643 million from the federal government to cover claims through Oct. 1, a commission official said. And the system for processing applications is overwhelmed. On Monday alone, more than 150,000 callers couldn't get through to the commission, an official said.

Commission spokeswoman Ann Hatchitt said the extended benefits will be delayed "a couple of months, at least." She blamed "complex federal requirements" after the Legislature hastily passed a law to take advantage of new benefits included in the federal economic stimulus bill that Congress enacted in February.

An internal e-mail sent to key commission officials on Monday, though, said the agency is "currently looking at November for roll out."

Hatchitt said that while some people's benefits will be severed, those who qualify will receive payments retroactive to the date they're cut off.

That drew scorn from former state District Judge Scott McCown of Austin, a leading critic of the state's jobless-benefits system.

"You can't pay your mortgage retroactive. You can't feed your kids retroactive," said McCown, director of the Center for Public Policy Priorities, which advocates for low- and middle-income Texans.

He predicted delays of the extended benefits would force about 70,000 people who've been out of work for just over a year to fall behind on their bills.

McCown and his associate Don Baylor Jr., an unemployment insurance policy expert, said the commission had months to gear up but showed no urgency. It now blames federal rules, when computer programming glitches and a lackadaisical attitude are the true problem, Baylor said.

Hatchitt responded: "We started working as soon as the Legislature changed the law."

The commission will adopt emergency rules to speed things but can't risk that money is loaded onto debit cards of recipients who don't qualify for the extended benefits, she said.

"We just have to make sure programming works – to make sure there aren't people paid that shouldn't be, because then we have to go get the money back," Hatchitt said.

The bleak report on the trust fund's insolvency and the crushing call volumes came as Gov. Rick Perry's three appointees to the commission held their monthly meeting in Austin.

Randy Townsend, the commission's chief financial officer, told them that about 285,000 Texans stayed on regular unemployment compensation in the six weeks that ended June 27, or nearly triple the number from the same six-week period last year. An additional 100,000 or so are drawing federal emergency benefits, which kick in after 26 weeks of state benefits.

He said Texas would have to take out interest-free loans from the U.S. Labor Department to keep paying unemployment benefits through Oct. 1.

That step was expected, although the projected borrowing has increased by $150 million since June 2.

Townsend, noting the state is supposed to keep a balance of at least $858 million in the trust fund, said $643 million in loans will put the fund $1.5 billion behind where it should be.

LaSha Lenzy, the commission official in charge of unemployment insurance, said 155,729 callers couldn't get through to the four commission's call centers last week.

"That was expected," she said because a new quarter began, and claimants unsuccessful in the last quarter often check to see if they now qualify. To reduce hold times, Lenzy said, the commission is scrambling to add 200 customer service representatives at a new San Antonio call center, expected to open next month.

The commission's German-made software for its payments system unexpectedly shut down for four hours Monday morning, Lenzy said.

Lenzy said in the week that ended July 4, the latest available data, the state paid out a record $93 million in benefits.

Townsend said the trust fund had only $119 million as of Friday.

The loan must be paid back by late 2010, or interest will be charged. The state generates unemployment insurance money through a per-worker tax on employers.

The borrowing prompted criticism of state policy. State Democratic Party Chairman Boyd Richie said Texas should have accepted $556 million of federal stimulus funds, which Gov. Rick Perry rejected, saying too many strings were attached.

"Unfortunately, hardworking Texas taxpayers and struggling businesses will shoulder the burden of Rick Perry's failure to do the right thing for our state and accept the unemployment insurance funds," Richie said.

Perry told reporters Monday that the borrowing is routine. The state borrowed from the federal government in 2003 during the last economic downturn, he said.

Accepting the $556 million would have required looser eligibility rules, burdening employers for many years to come, the governor argued.

The state would have had to look at the most recently completed quarter in determining a laid-off worker's average wages, instead of going back as much as 18 months. Also, the state couldn't disqualify someone for benefits if the person seeks only part-time work, and must cover people who quit their jobs for "compelling reasons," such as to follow a spouse to a new job.

"In a down economy is the wrong time to be putting more burden on job creators, wealth creators, we think," the GOP governor said. "Just because Washington, D.C., thinks it's a good idea does not mean it's a good idea for Texas."

Staff writer Christy Hoppe contributed to this report.

Tips on navigating Texas' unemployment insurance system:

•File soon after you lose your job. Don't wait until you've exhausted your savings. Benefits are calculated based on recently earned wages.

•Call centers are busy. First try filing online: ui.texasworkforce.org

•If you don't have a computer or phone, go to the nearest Workforce Solutions office. You can use theirs. While there, register for work. Some area locations:

3402 N. Buckner Blvd., Suite 308, Dallas 75228

7222 S. Westmoreland Road, Dallas 75237

2110 N. Galloway Ave., Suite 116, Mesquite 75150

217 N. 10th St., Garland 75040

1222 E. Arapaho Road, Suite 336, Richardson 75081

820 Jupiter Road, Suite 100, Plano 75074

•If you need to speak to someone, send an e-mail to: ui_info@twc.state.tx.us

•If you call, try later in the week. Every Monday and Tuesday, there are many calls from people who've had holds placed on payouts. Local numbers:

Dallas: 972-339-6200

Fort Worth: 817-420-1600

Others: 800-939-6631

•Read all correspondence from the Texas Workforce Commission. Respond immediately. Maintain a file and keep your Tele-Serv PIN number handy.

•Don't stop calling Tele-Serv every two weeks, even if you're not drawing benefits, or your claim will become inactive. If your situation changes and you become monetarily eligible, an active claim speeds getting benefits.

SOURCE: Texas Workforce Commission