RALEIGH, N.C. (AP) — The subpoenaed chief of North Carolina's unemployment benefits office found herself Wednesday in an uncomfortable spot before a General Assembly committee — talking to legislators about billions owned to the federal government and how jobless data is shared with the governor.
Assistant Commerce Secretary Lynn Holmes was grilled for more than an hour under oath. The subpoena was issued after she didn't attend a Revenue Laws Study Committee meeting last month. Holmes attributed her absence to a miscommunication.
Holmes defended the Division of Employment Security and its predecessor agency she also led over whether they reacted soon enough or strongly enough in raising concerns to lawmakers about why business taxes paid to the unemployment fund weren't keeping up with benefits. The Unemployment Insurance Trust Fund became insolvent in early 2009, and the state now owes $2.6 billion to the federal government to make up the difference.
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