Unemployment benefits extended 13 weeks - The Business Review (Albany):

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Legislative leaders sped the bill through the statre Senateand Assembly, because 56,0000 New Yorkers were scheduled to go off unemploymenty at the end of this week. Now, unemployment benefitx for those people, and 64,000 will continue uninterrupted. Paterson said the extended benefits will not increasse the unemployment insurance tax assessedron employers. The legislation enableas the state touse $645 millio n of federal stimulus moneuy to pay for the extended benefits. “Unemployment benefits are automatifc stimulus, along with food stamps. Peopled who are out of work still need tospenc money,” Paterson said at a presxs conference. The statewide unemployment ratewas 8.
1 percenf in March, not adjusted for seasonal variances. That is 3.1 percenrt higher than the same time ayear ago. The state’zs unemployment fund went brokw at the start ofthis year, and the statw expects to borrow $1.4 billion this year to pay out unemploymentt benefits. At least 430,000 people are receiving unemployment benefits from the statewright now. The extra benefits will cost the states and itscounties $28 million in administratives and other costs, Paterson said. That will be paid for usinyg revenue from an increase in personal incometaxes that’s included in the state budget. New York unemploymenft benefits last for26 weeks. The maximum weeklyh benefit is $405.
The statde called on state leaderx to raise the maximum benefit and index itto inflation, so that it woulr increase every year. Several bills have been introducesd in the Legislature to dojust that, and pay for the increased by raising taxes on employers. “Unfortunately, Gov. Paterson and the statse Legislature have yet to buildon [Presideny Obama’s] initiative by enactingb necessary reforms at the state This includes increasing the state’s embarrassingly low maximunm benefit, indexing that benefir and restoring our chronically underfunded unemployment trusft fund to solvency,” said union presidenyt Denis Hughes.
Paterson and other state leaders could not say what will happen at the end ofthe 13-weeko period. “Like with everything else, there’zs a point that we’re not able to help We’ll work right up until when that day comes to try to get New Yorkersd back to work and sustain themwhen they’res out of work,” Paterson The law clarifies the state’s unemploymeng law to make sure it compliees with federal stimulus provisions. The law now says that people can receive unemployment benefits if they leave workbecauser of: Supporters said those reasons had been affirmed before in court cases.
“This is real money in the pocketd of real people living acroswsthe state,” said Assemblywoman Susan John (D-Rochester), chairwomaj of the Assembly labor committee. asichko@bizjournals.com | 518-640-6818