|
|
FOR IMMEDIATE RELEASE |
|
State
Rep. Marc Gergely |
|
Gergely introduces bill to extend unemployment
compensation benefits by seven weeks
HARRISBURG, June 23 – Pennsylvanians receiving unemployment compensation could receive an additional seven weeks of extended benefits under a bill introduced today by state Rep. Marc Gergely, D-Allegheny, acting chairman of the House Labor Relations Committee.
Gergely said his bill, H.B. 1770, would create a temporary, alternative trigger for Extended Benefits, a joint state-federal program with a 50/50 cost sharing split that provides an additional 13 weeks of unemployment compensation only when the state's unemployment rate reaches a certain level.
Currently, Pennsylvania triggers Extended Benefits when the insured unemployment rate reaches 5 percent, and if it is 20 percent higher than it was during the past two years. According to the Department of Labor and Industry, Pennsylvania's Extended Benefits was triggered in February.
The insured unemployment rate is based on the number of people receiving unemployment compensation benefits as a percentage of workers covered by the unemployment compensation law. The total unemployment rate, or TUR, is the percentage of all workers who are unemployed, regardless of whether they are receiving benefits.
Gergely's bill would switch to the TUR as an alternate trigger option, which would allow people to receive unemployment compensation for an additional seven weeks when the TUR reaches 8 percent. Pennsylvania's TUR is expected to be 8 percent in June or July.
"By taking this action, nearly 60,000 unemployed people in Pennsylvania could receive unemployment compensation for another seven weeks at virtually no cost to the state," Gergely said. "All across Pennsylvania, thousands of people are struggling to find work in a difficult job market. This would give them a little breathing room so they can continue to put food on their table, pay their bills and provide for their families as they search for a job."
Gergely said if his legislation is enacted, eligible unemployed Pennsylvanians could receive a total of 79 weeks of unemployment compensation.
"This simple change would allow the state to draw down $145 million in federal funding to put directly into the pockets of unemployed Pennsylvanians looking for work," Gergely said.
The federal stimulus package removed the requirement for states to provide 50 percent of the cost for Extended Benefits and allows states basing their Extended Benefits trigger on the TUR to provide benefits for an additional seven weeks.
Every dollar provided in unemployment compensation to Pennsylvania residents generates $1.44 of activity in the state's economy, according to the Department of Labor and Industry.
Gergely said 29 other states base their Extended Benefits trigger on the TUR or are close to enacting legislation to do so.
Gergely said making that change would only be effective while 100 percent of the cost is available through the federal stimulus money or Congress passes additional legislation to fund it.
###