What did NJ's motor vehicle and unemployment systems learn from the COVID-19 crisis?

While a recently released review of New Jersey's repsonse to COVID-19 found state government was "unprepared for an emergency of this magnitude," a closer look was given to the way residents accessed unemployment claims and services from the Motor Vehicle Commission, both of which had to deal with a crushing demand and significant backlog in the early months of the pandemic.

The Department of Labor, which oversees New Jersey's unemployment services, and MVC both had to rapidly transition to more modernized services to allow for residents to gain access in a remote world.

The report, which was commissioned by the Murphy administration and conducted independently by Attorney Paul Zoubek of Cherry Hill-based Montgomery, McCracken, Walker and Rhoads, found that “we failed as a nation and as a state to be adequately prepared.” The purpose of the report, Zoubek wrote, was to create a “playbook for future administrations.”

From the outset, both the labor department and MVC struggled to meet the demand and had historic backlogs to deal with throughout the pandemic. The report found that some unemployment systems hadn’t been updated since the 1970s and that state employees exploited protocol at MVC to get paid leave.

NJ unemployment in the pandemic

Before the pandemic, the state’s unemployment rate was 4% and roughly 100,000 workers were receiving unemployment insurance benefits. Within a few months after the March 2020 COVID-19 shutdown, New Jersey's unemployment rate peaked at 15%.

That rate and the number of people receiving benefits did not recover for nearly two years. Zoubek notes in the report that the job losses were disproportionately higher for lower-income workers. As many as 65% of New Jersey's job losses were in food services, retail, administrative support and other low-paying occupations compared to just 24% in high-paying jobs, such as construction, wholesale and education.

But because unemployment numbers were so low, the department “did not have enough agents or call center staff to process the number of unemployment claims and questions that flooded” them and that at the beginning of the pandemic the biggest issue facing the system was that “there simply were not enough agents to handle the claims.”

The report also found that the department “did not have the technology in place at the beginning of the pandemic to support widespread employee remote work or to handle the volume” of claims.

“The NJDOL’s IT infrastructure was outdated and had not been regularly, substantively updated prior to the pandemic. As a result, parts of the system dated back to the 1970’s,” the report says.

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They have since started an update that will be able to handle more applications and updates will be implemented on a regular basis.

The report noted that there was confusion about the process because programs and eligibility “evolved” and many applicants were using the system for the first time. Claimants reached out to their representatives in the Legislature for assistance with questions and claims.

As many know, there were problems with the call centers as well. NJDOL contracted an outside company to handle staffing levels because “turnover in the call center was high for a variety of reasons,” including confusing regulations, angry callers and limited amounts of call center staffing.

“Across many initiatives — notably unemployment insurance payouts — New Jersey’s existing infrastructure was unequipped to handle the sudden increase in demand and needed to quickly address its IT, staffing, and communication needs,” the report said.

The report recommends that the state invest in data architecture, technology platforms and digital services for non-emergency government operations.

Department of Labor spokesperson Angela Delli Santi said that throughout the pandemic the department was focused on one goal “getting benefits to as many eligible workers as possible, as quickly as possible” and noted that they saw a “2,700% increase in unemployment claims.”

“This comprehensive, independent analysis affirms that we were largely successful in this endeavor, while confirming that the best way to prepare for the next crisis is to continue to invest in agile, user-tested technology that makes it easier for all workers to engage with our systems and receive benefits when they are needed most,” she said. “New Jersey is proud to be among the very best states in which to be a worker — and we continue to be a national leader in paying unemployment benefits to the most eligible workers.”

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MVC transactions had to shift from in-person activity

Before the pandemic, the majority of the services provided by the state’s Motor Vehicle Commission were handled through in-person with MVC agents. In addition, some MVC functions and transactions could be handled by mail.

When closures and stay-at-home orders swept the state, the agency had to shift to an online operation that had to be constructed — MVC simply did not have the digital infrastructure required.

“Mandated closures from March to July significantly impacted the agency’s ability to deliver any of its services for a matter of months,” the report says. “As a result, NJMVC experienced an unprecedented backlog of these transactions upon reopening. NJMVC was not adequately prepared for the impact its months-long closure would have upon reopening in July 2020.”

The report notes that the lines at agency locations in the summer of 2020 were so bad that “individuals began selling their places to the highest bidders” and that when a ticketing system was implemented, lines were still so intense that cops had to handle crowd control.

Agency locations also had to shut down for cleaning when employees exhibited COVID-19 symptoms which only worsened the backlog and exacerbated staffing issues which were estimated to be at just half of capacity throughout the pandemic.

According to the report, staffers “frequently exploited state guidelines on COVID-19 leave entitlements” by using pictures of old positive COVID-19 tests to justify paid leave or got doctor’s notes virtually from out-of-state providers.

The pandemic allowed for the MVC to move crucial services online and has “more than doubled the number of transactions that can be conducted online” so it now includes license replacements and renewals as well as twenty-three other transactions. The website has also received a more user-friendly redesign.

The report recommends that the state provide regular, long-term commitments to agency IT departments so that they have the “capacity, skills and capabilities to carry agency operations, resolve problems and identify additional opportunities to incorporate technological advancements.”

The agency did not respond to request for comment.

Katie Sobko covers the New Jersey Statehouse. Email: sobko@northjersey.com

This article originally appeared on NorthJersey.com: NJ COVID review: MVC, unemployment were unprepared in 2020