California officials knew a computer upgrade for the state's unemployment insurance program was vulnerable to problems before it was installed.
The Sacramento Bee reports that officials underestimated how many unemployment claims would be affected by a glitch in the $188 million system upgrade.
The data-conversion problem eventually delayed jobless benefits for nearly $150,000 Californians.
Employment Development Department officials initially believed the problem would only affect a small number of people whose claims could be approved by hand. Emails indicate that the governor's press office directed officials to push a message that reduced federal funding was part of the problem.
The agency has apologized for the delay and says employees were working around the clock to process backlogged claims.