Solving the problems that plagued Kentucky's unemployment system during the pandemic is not proving easy.A company the Labor Cabinet wanted to hire to replace its antiquated computer system has withdrawn from negotiations, Labor Secretary Jamie Link told state lawmakers on Tuesday in Frankfort during the second meeting of the Unemployment Insurance Reform Task Force.And while state lawmakers agreed to appropriate federal stimulus money to hire 90 new employees that would clear the remaining claims backlog, and help residents re-enter the workforce, the cabinet can't find applicants to fill the positions, Link said.Both obstacles are creating new headaches for Gov. Andy Beshear's administration, which replaced former Labor Secretary Larry Roberts with Link in June.Link helped turn around KentuckyWired, the agency tasked with bringing high-speed internet to the state's most rural reaches, after years of cost overruns and delays. Many are hoping he can do the same with Kentucky's unemployment system, but the challenge will be tough."I'll be quite honest with you, it was very frustrating to learn recently that the progress that had been made... was being cast aside and basically we're starting over," said Rep. Russell Webber, R-Shepherdsville, told Link during the hearing.Talks to replace the unemployment computer system began to bog down after a series of nationwide cyberattacks exposed the security weaknesses of unemployment systems, and made it clear more security measures would be necessary, Link said."The vendor out of the blue notified us they were withdrawing their bid because they had severely underbid," Link said.Lawmakers have appropriated $40 million to replace the system, which was created in the 1970s and relies on outdated computer languages.The cabinet hopes to put out a new request for proposals in "a few weeks" and believes they can still meet the original timeline for completion of one to two years, Link said.Lawmakers also approved $9.5 million in federal stimulus funds for the 90 new employees, but the cabinet has had difficulty hiring, Link said."With the funding being one-time federal funds, while certainly being helpful, the problem we are facing is recruiting," he said. "Employees aren't willing to take a position that has a likely one year existence.Link said the cabinet had wanted recurring money from the state's general fund. That seemed to draw the ire of Sen. Ralph Alvarado, R-Winchester.Republican leaders offered to lend the state unemployment office 80-90 employees from the Legislative Research Commission to help fill those roles temporarily, Alvarado said."That offer was rejected summarily by the governor and by whoever was in charge of things at that time," he said. "That's my concern."The offer was turned down because of federal rules that govern staffing, said Buddy Hoskinson, executive director of the Kentucky Office of Unemployment.Rep. McKenzie Cantrell, D-Louisville, defended the cabinet's handling of the problems."You know, we can't sit here in disbelief that things haven't gotten done the way we wanted you all to do them if we haven't given you the money to do it," she said.