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Report: EDD Calls Costing State Millions

POSTED: 6:01 pm PST February 19, 2009
UPDATED: 7:11 am PST February 20, 2009

As she has dozens of times before, Melanie Buros calls the Employment Development Department to get an answer about her unemployment claim.

"One day it was almost 50 calls because I kept dialing and redialing, and dialing and redialing," said Buros.

Every time she calls, she hears: "Thank you for calling the Employment Development Department. We're currently receiving more calls than we can answer …"

Buros gets a recorded message that asks to try later or to go online.

10News learned that every time that recorded message is heard, Verizon collects a nickel -- and with the volume of calls coming in to the EDD, that amounts to many nickels.

An investigation by the Sacramento Bee revealed that in 2008, the state paid Verizon over $2.5 million. However, just for January 2009, when unemployment really hit, the state had to pay $2.1 million.

"It's outrageous," said Lani Lutar, president of the San Diego Taxpayers Association.

"Finally we have an approved budget but up until now they're raising our taxes, and yet their charging us to get a system that tells us to call back or go online. I might as well get a busy signal," said Lutar.

The EDD said it is hiring 400 people to help answer the phones and get checks out faster.

The office said it is receiving upwards of 3 million calls a day, not only from people at home but at its employment career centers.

That adds up to a lot of nickels, and while Buros said that's a sad way to run the system, she doesn't feel she has any other choice.

"I would like some answers and I'm going to keep calling, and unfortunately they're going to keep paying the bill," said Buros.
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