Emergency unemployment insurance continues
claimants should certify for benefits
faces budget cuts
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[January 05, 2013]
CHICAGO -- The federal Emergency
Unemployment Compensation insurance program will continue through
December 2013, the Illinois Department of Employment Security said
Congress this week extended the Emergency Unemployment Compensation
program as part of the ongoing fiscal cliff negotiations. Illinois
workers collecting EUC should continue to certify for benefits.
Congress did not add new weeks to the federal unemployment insurance
program. Therefore, individuals who exhausted EUC are not eligible
for additional unemployment insurance benefits.
Extending the EUC program will support a gradually improving
economy. Every $1 in unemployment insurance generates $1.63 in
economic activity because the dollars are quickly spent at
Had Congress not reauthorized the program, 90,000 Illinois
claimants would have received their last EUC payment within the next
two weeks. Additionally, 2,800 individuals each week would have
completed the state's regular program of unemployment insurance and
not had access to the federal EUC.
Extending EUC will not alleviate the budget pressures at IDES.
The Illinois department receives operational funding entirely from
the federal government. Funding levels are tied to the number of
people collecting unemployment insurance. Fewer people collecting
state unemployment insurance means an $11 million annual cut. These
cuts come at a time when the numbers of claims remain 38 percent
higher than prior to the recession.
The fiscal cliff negotiations did not resolve cuts to budgets
such as the IDES budget. Rather, Congress delayed by two months the
date the automatic cuts in what is called the sequester take effect.
Therefore, IDES still stands to lose an additional $17 million in
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To begin to address these budget challenges, IDES already has
stopped scheduling 216 intermittent employees, consolidated eight
offices and vacated 10 outpost locations shared with partners. The
federal cuts might necessitate further service reductions, including
additional office consolidations.
Illinois businesses provide the state's 25-week regular
unemployment program for claims initiated in 2012. The federal EUC,
divided into Tiers I, II, III and IV, provides the next 53 weeks of
unemployment insurance. The federally funded Extended Benefits
program, or EB, provided the final 20 weeks. It expired in May 2012.
Department of Employment Security
file received from
Illinois Office of
Communication and Information]