Seven more weeks of unemployment benefits in California’s new budget plan
Millions of unemployed Californians could wind up with more weeks of jobless benefits as part of the budget deal Gov. Gavin Newsom and legislative leaders reached this week.
The state legislation would authorize up to seven extra weeks of federally-funded emergency benefits, for a total of 20 weeks, if the state’s unemployment rate reaches a certain level considered the “high unemployment period” in the bill.
That level would be hit if the average total unemployment rate reaches 8 percent for the most recent three months as determined by the U.S. Department of Labor, as well as other criteria.
California’s May unemployment rate was 16.3 percent, down only slightly from April’s 16.4 percent, so the state’s three-month average is well above 8 percent..
As a result, someone could get up to 59 weeks of benefits eventually, like this:
▪ 26 weeks from the state’s regular benefit program.
▪ 13 weeks from the federal Pandemic Emergency Unemployment Compensation law, passed earlier this year as a response to the surging unemployment triggered by the coronavirus pandemic. That benefit ends December 31.
▪ 20 weeks from the federal emergency benefit program, including the seven authorized by the state’s legislative action.
Lawmakers plan to vote this week on measures to implement the budget, including the so-called “trailer” bill with the unemployment provisions. Legislation is needed so that state residents can get the 20 weeks. Newsom plans to sign the bills into law before July 1, the start of the next fiscal year.
“The trailer bill is a reflection of the reality that COVID-19 will likely be with us for a long time,” said Assemblyman David Chiu, D-San Francisco. “Californians desperately need the extension of unemployment benefits, there’s no question about it.”
Chiu has been a vocal critic of the department, which has been plagued by delays as the number of unemployment claims has skyrocketed during the pandemic. He said his office receives “heart-rending” stories daily from constituents who have not yet received needed unemployment assistance, adding that getting the additional aid out to people quickly will be imperative.
California residents are eligible for up to $450 a week in benefits, and until late July, they can also receive an extra $600 weekly.
“The proposed change would maximize federal financial support available through the CARES Act, minimize costs on employers, and provide additional benefits on this extension for impacted workers,” said Loree Levy, Employment Development Department spokeswoman.
There could even be more extended aid, since that’s been a fairly easy sell in Washington in times of economic turmoil. During the Great Recession of 2007-2009, states were authorized to provide up to 99 weeks, and all but two did so.
While there’s federal support for more help in Washington for the unemployed, there’s also a reluctance to provide any more overall economic relief for awhile.
Congress is not expected to act on a plan for about a month, if then, as Senate Majority Leader Mitch McConnell, R-Kentucky, says he wants a “pause” in relief legislation until he sees how the economy is doing.
The April job losses, EDD said in a statement, “reflect unprecedented job losses never before seen in California’s history” dating back to modern record-keeping in 1976.
Currently, California’s Employment Development Department has processed 6.3 million claims and paid out $30.3 billion.
Of that amount, $797 million has gone to pay claims under the Pandemic Emergency Unemployment Compensation program.
This story was originally published June 25, 2020 at 12:00 AM with the headline "Seven more weeks of unemployment benefits in California’s new budget plan."
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