FRANKFORT, Ky. — Kentucky unemployment benefits were first on the agenda at a meeting of the Senate Appropriations and Revenue Committee Wednesday. In a discussion that lasted an hour and a half, members had some tough questions and comments for a pair of representatives with state unemployment, who joined the meeting remotely.
They also wanted to dig into the decision to contract with global accounting giant Ernst & Young (EY) to help clean up the backlog of pending claims. Tens of thousands of claims still remain with thousands dating all the way back to March.
The deal will cost the commonwealth almost $7.6 million.
“First, I thought that was for a year and that would be a pretty good deal with 100 employees or so,” state Sen. Mike Nemes of District 38 said. “But if it’s for one month, which I’ve also heard, that seems to be very high.”
Another Nemes, state Rep. Jason Nemes, who represents much of Jefferson and Oldham Counties, has issues with how Gov. Andy Beshear is not including the legislature on spending decisions.
“The governor has not brought the legislature to the table in determining how to spend those dollars,” Rep. Nemes complained.
He also had a problem with the decision to hire EY without a bidding process, which he says opens the door to a lack of oversight, raising questions about business relationships and conflicts of interest.
“I’m not making any of those allegations at all, I want to be very clear about that,” Rep. Nemes said. “But when there’s a no-bid contract those questions have to be asked by the legislature.”
Rep. Nemes also believes the state should have brought on EY long ago.
The Labor Cabinet said the cost of the contract will be paid with money from the federal CARES Act.
Contact reporter John Charlton at jcharlton@whas11.com. Follow him on Twitter (@JCharltonNews) and Facebook.
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