Frankel votes for unemployment compensation extension

by state Rep. Dan Frankel

I am delighted that a law I co-sponsored, and voted for, has been signed by the governor and will immediately help more than 25,000 people who have exhausted their unemployment benefits. This law allows Pennsylvania to access federal stimulus dollars designed to extend unemployment benefits for men and women who’ve been looking for work, but unable to find it.

In Pennsylvania, 25,430 people who had their benefits expire in July and the 60,000 people who will be affected before the end of the year will receive seven more weeks of benefits while they continue to look for new employment in this challenging job market.

Besides putting money into the pockets of struggling workers, this bill will inject nearly $145 million into Pennsylvania businesses and the economy.

The average weekly unemployment payment in the state is $305, regardless of family size. This translates to $15,860 per year, a figure that is $6,190 below the federal poverty guideline for a family of four. Because families receiving unemployment often spend their dollars right away to pay for necessities like lodging and food, every dollar provided in unemployment compensation for residents generates $1.44 of economic activity. For this reason, unemployment compensation is important for taking care of families, and is also one of the best uses of stimulus dollars.

Act 30 of 2009 (H.B. 1770) makes a temporary change to the Unemployment Compensation Expanded Benefits law to allow the state to draw nearly $145 million in federal stimulus funding.

The new law temporarily switches the mechanism Pennsylvania uses to trigger extended unemployment benefits from the current "insured unemployment rate" – the percentage of workers covered under the unemployment law who are out of work – to the "total unemployment rate" – the percentage of all workers in Pennsylvania who are out of work.

Pennsylvania has lost nearly 180,000 jobs since the nationwide recession began in December 2007.

According to the Department of Labor and Industry, the seasonally adjusted unemployment rate in June was 8.3 percent, unchanged from the previous month.

Under the stimulus law, the federal government will cover the cost of providing the seven additional weeks of unemployment benefits if Pennsylvania's total unemployment rate exceeds 8 percent, which it has since May. That rate is up 3 percent from this time last year. Thanks to the stimulus, there will be no impact to the state Unemployment Compensation Trust Fund or to businesses.

Now, with Act 30, most Pennsylvania workers will be eligible for a total of up to 79 weeks of unemployment benefits, as long as the federal money is available. By taking this necessary step, we will assist thousands of families to put food on their family's table, pay their mortgage and other bills.

As always, please contact my office at 412-422-1774 or visit my Web site at www.pahouse.com/Frankel for assistance or information on this or any state-related matter.