During negotiations over the economic stimulus package, we repeatedly highlighted the stimulative effect of extended unemployment benefits. Thankfully, the final version of the Recovery Act reserved $1.5 billion in such spending. Specifically, the stimulus bill temporarily ...
During negotiations over the economic stimulus package, we repeatedly highlighted the stimulative effect of extended unemployment benefits. Thankfully, the final version of the Recovery Act reserved $1.5 billion in such spending. Specifically, the stimulus bill temporarily shifted (PDF) the full costs of the Extended Benefits (EB) program -- available to all states with unemployed rates above 6.5 percent over a three-month period -- onto the federal government's books (removing a requirement that states pay 50 percent of the share) and also loosened federal eligibility rules. The National Employment Law Project (NELP) estimates (PDF) that this provision will cover 144,638 jobless workers through the end of 2009 who otherwise would have lost benefits at the end of March, including 52,472 in the Prairie State.
One small problem, though: Illinois is one of only 13 states that are yet to pass the legislation necessary to trigger the release of the additional money. NELP spells out why it's so important for the General Assembly to act fast (PDF):
[I]t is vital for the states to act quickly to take up the EB option. Large numbers of workers who qualified for the full 33-week extension of EUC benefits will begin running out of benefits in March and April 2009. By moving expeditiously to pass the required state legislation, states can ensure that these workers do not reach the end of their emergency unemployment benefits in the depths of an extremely difficult job market.
HB 3860, introduced by Rep. Jack Franks on February 25, appears to match up with the model legislation laid out by NELP. After passing the Labor Committee on March 11, it's yet to hit the House floor for a vote. Legislators would do well to get this one moving.
UPDATE (4/14): In a follow-up to this post, we report that Illinois triggered an additional 13 weeks of extended benefits on April 5 and is in line to add another seven weeks if the legislation referenced above is approved by the legislature.
UPDATE (6/29): Both legislative chambers passed Senate Bill 1350 last month, which modifies state law to trigger an additional 7 weeks of extended benefits (on top of the 13 already triggered in April). On June 26, it was sent to Gov. Pat Quinn's desk. He has 60 days to sign it into law.
UPDATE (8/26): We've created an open thread for readers to learn about the unemployment insurance process and discuss any questions or advice they have. Follow the link here.
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