GOVERNOR’S ANSWER ON MISMANAGEMENT WITHIN DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT IS YET ANOTHER NON-ANSWER
Nashville, Tenn. (April 3, 2013) – Yesterday, in response to the call from Tennessee Citizen Action, the AFL-CIO of Tennessee, and several legislators to put the brakes on his proposed changes to workers’ comp law that will create a new division under the Department of Labor and Workforce Development, the Governor said that he thought “the comptroller’s audit had no bearing on workers’ comp.” His full statement given during a press availability: “I think it’s a whole separate deal. One of those is about processing claims, and one of them is about adjudicating workers’ comp issues, so those are two very, very different issues. They’re in the same department, I admit, but they’re two very different issues.”
“We’ve heard this sort of non-answer answer before from Governor Haslam,” said Mary Mancini, executive director, Tennessee Citizen Action, “Instead of thoughtfully reconsidering his decision to add yet another division to the troubled Department of Labor, the Governor’s non-answer indicates his choice to trivialize and isolate the findings of the report and detach his public policy decisions from the mismanagement identified within the report.”
Governor Haslam is pushing to create a new multimillion-dollar workers’ comp division housed within the troubled Department of Labor and Workforce Development that has also in recent weeks seen it’s top management resign for “family reasons” and about which the Comptroller’s Single Audit Report said the “management has threatened the integrity of the Unemployment Insurance Program by failing to provide sufficient controls and oversight.”
The report found problems within 11 different state agencies and universities, and the Department of Labor and Workforce Development was the subject of 25% of the problems.
“If he wants to be honest, it’s not just the Department of Labor that has issues, it’s also 10 other agencies within his government,” said Wil Hammond, Communications Director, AFL-CIO of TN, “If anything, the mismanagement is worse than he is willing to admit to. This is clearly not the right time to add more responsibilities to an agency that can’t handle the load they have now.”
Tennessee Citizen and the AFL-CIO of Tennessee once again call on Governor Haslam to delay the creation of a new workers’ comp authority under the Department of Labor until he has had a chance to clean up department and the Comptroller has a chance to issue the 2013 Single Audit Report in 2014.