EDD says DI/PFL costs are rising by $2.3 billion as it seeks more money for modernization

The Employment Development Department told lawmakers Tuesday that its cost estimates for disability insurance and paid family leave are rising by $2.3 billion, even as the agency asked for an additional $20 million for its EDD Next document management work, according to an Assembly Budget Subcommittee hearing.

The hearing summary says EDD presented the upward revision in DI/PFL benefit forecasts and the modernization request together during the Assembly Budget Subcommittee on State Administration's review of May Revise proposals. The summary does not explain what drove the forecast change, but it identifies SB 951 as a major factor in the benefit-cost discussion.

EDD's modernization request centered on EDD Next, the department's broader technology overhaul. The hearing summary describes EDD Next as the overarching technology modernization effort and says the $20 million request would expand document management work.

The subcommittee also heard other state administration proposals during the hearing, including items from the Secretary of State's Office, the Department of Consumer Affairs, the Department of Industrial Relations and CalHR. No votes were taken, and the summary says the items were left open.