NY Governor Paterson Introduces Legislation To Allow Unemployed Workers To Receive Extended Federal Benefits

Bill Would Allow State to Take Advantage of $645 Million in Funding Made Available by Federal Economic Recovery Package

April 13, 2009 -- New York Governor David A. Paterson today announced that he has submitted legislation that will allow New York to access an estimated $645 million in additional federal aid for the New York State unemployment system and for unemployed workers. This legislation would take advantage of federal funding for Unemployment Insurance (UI) benefits under the American Recovery and Reinvestment Act (ARRA).

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“Our top priority is getting New Yorkers back to work. And while we have started down the road to recovery, we have an obligation to protect those who remain out of work and are struggling to make ends meet,” Governor Paterson said. “This bill is a critical step towards fulfilling that obligation. I want to express my gratitude to President Obama, Senator Schumer, Congressman Rangel and the New York Congressional delegation, for their quick and decisive action to address our economic crisis, and for providing assistance directly to those in economic distress.”

This legislation will ensure that New York can tap into additional ARRA funds. Individuals become eligible for federal funds to cover an extended 13 weeks of unemployment when one of two state-wide benchmarks has been reached: the “Insured Unemployment Rate” (IUR) or the “Total Unemployment Rate” (TUR). The IUR is calculated by dividing the average number of workers receiving state unemployment benefits in the past 13 weeks by the total number of employed workers in the state. The TUR is calculated by dividing the overall number of unemployed workers by the total civilian labor force in the state. If the TUR exceeds 6.5 percent over a three-month period, the extended UI benefits are triggered.

Currently, New York State only uses the IUR, which is unlikely to be met this year. The Governor’s proposed legislation would allow New York State to use the TUR, which has already been met, in cases where benefits are fully federally funded. Without this action, New York UI recipients would miss out on millions of dollars of federal aid.

The bill also makes certain clarifying changes in New York law to ensure that New York meets the requirements in ARRA for UI modernization funding. These amendments make clear that individuals who leave work because of compelling family circumstances, such as the illness of an immediate family member, domestic violence or the need to accompany a spouse who must move to take on new employment, will be eligible for UI. The bill also recognizes that part-time workers cannot be disqualified for UI benefits because they seek similar part-time work.

These enactments will ensure that New York meets the conditions for $275 million from the original $645 million in additional federal “UI modernization aid,” which will be used to support benefit payments and will help to address a shortfall in New York’s UI Trust Fund.

Governor Paterson thanked the New York State Department of Labor and the United States Department of Labor for providing technical expertise in crafting the legislation.

Source: New York Governor