Kansas Department of Labor outlines Ute rollout, trust-fund solvency and fraud controls

Kansas Department of Labor Secretary Amber Schultz told members of the Joint Commerce Committee that the agencys revamped unemployment insurance system, known as Ute, has stabilized operations and improved claimant self-service since it went live in November 2024.

Schultz said the state must certify the unemployment trust funds adequacy each Dec. 1. "On 2025, the trust fund was certified as solvent and was, could pay unemployment insurance benefits for 1 year and 8 months at payout levels similar to that of the great recession and the pandemic," she said. She described Ute as "the fastest wholesale implementation of any state" at 29 months.

Why it matters: The trust-fund solvency assessment is the standard test of whether Kansas can sustain benefit payments during a severe downturn. Schultz emphasized that the agencys priorities are both timely payments and protecting program integrity.

Details: Schultz summarized eligibility rules for unemployment insurance: claimants must be unemployed through no fault of their own, have sufficient work history, be able and available for work, and be actively seeking work. She said the department administers adjudication and appeals and collects employer-side taxes tied to experience ratings.

On the technology side, Schultz said Ute boosted self-service: "over 90% of claims are now managed completely through self-service," and cited improved uptime and lower call-wait times. She outlined a three-pillared integrity strategy of prevention, detection and recovery that includes limited account-generation interfaces, layered identity verification, employer validation and cross-matches with state and federal partners (including U.S. Treasury lists). For improper payments, she listed recovery tools such as liens, levies and prosecution.

Staffing and oversight: Schultz said contact-center turnover has stabilized since 2024 and that nearly 100 staff now handle calls, decisions and benefits support. She also noted the department is subject to federal and state audits and that audit findings are addressed according to potential impact.

What lawmakers asked: Senators and representatives asked whether out-of-state wage credits carry to Kansas claims and how the department measures program performance. Schultz said interstate eligibility "depends on the location of the employer, the location of the employee where those wages were earned" and characterized each claim as "unique."

Next steps: Schultz offered to provide follow-up information requested by committee members and encouraged legislators to contact her office for specific data requests.

The committee did not take formal action on the presentation.