PA Unemployment Fraud Adding to Already-Bankrupt System

As PA Independent reports today, Pennsylvania had $374 million in overpayments for Unemployment Compensation (UC) last year, including $227 million in fraudulent claims, according to the US Department of Labor. These fraudulent payments represent almost 5% of total payments, the 9th highest fraud rate in the country.

Pennsylvania’s UC fund has borrowed $3 billion from the federal government (a number that continues to grow). Both candidates for governor — Dan Onorato and Tom Corbett — have acknowledged the problems in our UC system and the need for reform. Nearly everyone recognizes this as a major issue, except Gov. Rendell — he still thinks the only issue facing Pennsylvania is not enough tax revenue.

I’ll be on NBC 8 (WGAL) in the Harrisburg area tonight talking about this issue.