Legislation Uses Federal Funds to Increase Unemployment Benefits and Expand Eligibility
Facing a record unemployment rate of 10.5% statewide and as high as 11.7% in communities she represents, Assemblymember Alyson Huber (D-El Dorado Hills) today voted to make California eligible for up to $3 billion in one-time federal unemployment insurance funds available as part of the President’s economic recovery package. Without impacting the state’s budget in any way, AB 3x 23 increases unemployment benefits for 1.95 million Californians and extends benefits for 469,000 unemployed Californians.
“We needed to act now to help people suffering from this economic crisis, more than a half-million people would have lost their only lifeline to pay the bills as they look for work,” said Huber, explaining the need to adjust the state’s unemployment insurance coverage formulas. “Voting for this bill was the responsible thing to do help Californians recover from this economic downturn.”
AB 3x 23 updates state law to conform with the Federal Unemployment Insurance Modernization Act that is part of Obama’s American Recovery and Reinvestment Act of 2009 signed into law on February 17, 2009. These updates make California eligible to receive up to $3 billion from the federal government it would not have been able to otherwise secure.
These federal funds will be used to directly increase state Unemployment Insurance benefits by $25 per week and to continue providing extended benefits of up to 33 weeks – beyond the state’s current 26-week limit. The federal guidelines also create a separate 20-week extended benefits program, which would allow unemployed Californians to receive up to 79 weeks of benefits. These provisions will remain in effect for claims established through December 2009.
According to the National Employment Law Project, unemployment benefits are an effective economic stimulus, providing $2.15 in economic growth for every dollar in benefits spent by workers and their families on housing, groceries and other basic necessities.
“This was a smart vote that protects Californians,” added Huber. “Getting this help is vital for those who have become unemployed. We are seeing unemployment rise, nearly 1 in 8 people in this area count on this lifeline to make ends meet as they look for work.”
