A planned upgrade to Michigan’s unemployment insurance system is behind schedule and over budget, with developers predicting a public release next may
The state contracted Deloitte with a $78 million, 10-year contract to operate the state’s unemployment insurance software.
Development started in 2023 and was projected to take two years.
But technology issues from the company created delays that have led to questions from House lawmakers, who would have to approve any additional funding.
“The project is on an upward trajectory, was shown significant improvement, and we are now tracking on schedule for a go-live for the employer portion of the project this December and the claimant portion of the system next spring,” said David Parent, a managing partner with Deloitte.
The current system, known as MiDAS, has resulted in multiple lawsuits against the state from residents who were falsely accused of fraud.
The state Department of Technology, Management and Budget is asking for an additional $20 million in the annual budget to support development of the project and keeping the current system online.
The Department estimates that the new system will save $5 million a year once complete.