Idaho’s record number of unemployed workers will be automatically getting a temporary $25 increase in their weekly benefit checks.
Gov. C. L. “Butch” Otter signed the agreement with the U.S. Department of Labor late Thursday, clearing the way for the weekly supplemental payments. The governor emphasized to workers that the supplemental payment is temporary, made with federal funds.
“I want to thank Governor Otter for his quick action on this matter,” Idaho Department of Labor Director Roger B. Madsen said. “Because of that, tens of thousands of Idaho households will get a little lift at a time they need it most.”
Unemployment insurance benefit recipients will all qualify for this additional payment. The Idaho Department of Labor is modifying its benefit system to accommodate the increase being financed by the federal government under the recent economic stimulus package. The first supplemental $25 payments will be included in the benefit checks mailed or directly deposited during the week of March 1.
All unemployed workers qualifying for benefits by Dec. 26, 2009, will receive the supplemental payment until they exhaust their regular state or federal extended benefit allotment. Idled workers qualifying for benefits after that date will receive their regular state benefit allotment only.
Almost 48,000 unemployed workers received $12.8 million in regular and federal extended benefits in Idaho this week – $10.9 million in regular state benefits for 40,800 workers and $1.9 for another 7,100 receiving extended federal benefits. That is more than double the recipients and amount of benefits from just a year ago.
Although the benefit checks average just over half what recipients were making when they had jobs, the money helps households throughout Idaho pay their bills and continue patronizing community businesses.
The increase in claims for benefits is reducing the state’s Unemployment Insurance Trust Fund. The fund, which is supported by employer taxes and pays only for regular state benefits, is projected to be depleted late this year or in early 2010. To continue paying benefits, the state will obtain an interest-free bridge loan from the federal government that will be repaid as new tax revenue from employers begins rebuilding the trust fund.