On The Money: Appealing Job

California has more than 2 million unemployed. But the people on the board overseeing their appeals have a great job. They make six-figure salaries and all of them are termed out politicians.

One lawmaker is trying to change that.

"Most Californians don't make $100,000 a year," noted Senator Tony Strickland. The Thousand Oaks Republican told CBS 13, "And these folks because they're political insiders get it by showing up once or twice a month."

Strickland is targeting his former colleagues who now serve on California's Unemployment Insurance Appeals Board.

The board members include termed out senators Roy Ashburn and Dennis Hollingsworth, both Republicans – and Denise Ducheny, a Democrat.  Three former Assembly members also sit on the board including Alberto Torrico, a Democrat – and two Republicans, George Plescia and Board Chair Bonnie Garcia.

"This should be first thing on the chopping block when we have a deficit." Strickland told CBS 13. Strickland is introducing a bill that would strip away the six-figure salaries – and offer instead a daily fee of $100 for every day they work.

California allows those out of work to take their case directly to an unemployment appeals judge, if their unemployment claim was denied. The second-tier for appeals is not unique to California – about a dozen other states have the same protocols. But unlike other states, critics say the California Unemployment Insurance Appeals Board has become a safe landing pad for termed out legislators who make $128,109 annually.

"There would be no savings to the general fund," Board Chair Bonnie Garcia told CBS 13.  Garcia added, "No additional dollars going to the general fund. In fact it might even hurt our ability to decide cases in California."

Garcia says 92% of the board's funding comes from the federal, not the state government. Board members may meet only once or twice a month – but typically work 25 – 50 cases a day.

"Are taxpayers getting a good bang for the buck?" this reporter asked the board chair.

"Absolutely," said Garcia, who added, "At no cost to the general fund, we're delivering services that's allowing people to get rapid decisions when they are unemployed or disabled - and they do not have to use their county courts."

Garcia stated, "The workload here in California with 2.2 million people unemployed last year – 450,000 ended up in our system. That's one in five people that applied for benefits. And the Board's reversal rates on EDD decisions was about 49%. That's significant So when one of two people who appeal have a different outcome that's important to know. Those 450,000 represent the unemployed in about thirty states. So we have a level of workload that's equivalent to what thirty other states are doing."

Alberto Roldan, the Chief Administrative Law Judge for CUIAB agrees. Roldan, who also serves as Acting Executive Director,  told CBS 13 criticism against the Board is "very unfair."

"In 2010, the Board decided over 32,000 appeals and every appeal has to be assigned to two Board members."

But Senator Strickland's focus is on the former lawmakers who serve on the Board. He calls them "political insiders" – and he knows that cutting their salaries is an uphill fight at the Capitol.

"The problem is most legislators look in the mirror and say hey that could be me when I term out," Strickland told CBS 13. "And it's just simply wrong."

The Board members were appointed by former Governor Arnold Schwarzenegger or legislative leaders. Senator Strickland's bill to cut their pay will be introduced later this month.

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