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FOR IMMEDIATE RELEASE |
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State
Rep. Marc Gergely |
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House passes Gergely's bill to extend
unemployment compensation benefits by seven weeks
Would help 21,000 people about to lose benefits on July 18
HARRISBURG, July 7 – In a move to help 57,000 out-of-work Pennsylvanians about to lose unemployment compensation benefits, the House of Representatives today passed a bill introduced by state Rep. Marc Gergely that would use federal dollars to extend the payments for another seven weeks.
"About 21,000 Pennsylvanians looking for work would lose their unemployment comp payments on July 18 if we don’t take this action," Gergely said. "In the weeks ahead, nearly 57,000 people could lose this safety net. That is why the House has acted swiftly to make this temporary change to the law so we can use entirely federal dollars to give out-of-work residents a few more weeks to find a new job."
Gergely said his bill, H.B. 1770, would make a temporary change to the Unemployment Compensation Expanded Benefits law to allow the state to tap nearly $145 million in federal stimulus funding.
"Using entirely federal dollars, we can help thousands of families who could not pay their mortgage and would struggle to buy groceries without this seven-week benefit extension," Gergely said. "This temporary change would have no effect on the state's Unemployment Compensation Trust Fund."
The state Department of Labor and Industry reports the state's seasonally adjusted unemployment rate rose again in May to 8.2 percent, representing 532,000 Pennsylvanians out of work. The same rate is up 3.1 percent since May 2008. The department does not expect unemployment rates to decline in the near future.
The average weekly unemployment payment in the state is only $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. Pennsylvania has lost nearly 180,000 jobs since the recession began in December 2007.
"This bill would also help Pennsylvania's businesses because every dollar provided in unemployment compensation for residents will generate $1.44 of activity in the state's economy," Gergely said. "It is important to note that this is not a free ride. Recipients must prove they are looking for a new job."
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. Pennsylvania's extended benefits were 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.
At least 29 other states have taken or are close to taking the necessary action to be eligible for the additional seven weeks of unemployment compensation payments.
Gergely said if his legislation is enacted, eligible unemployed Pennsylvanians could receive a total of 79 weeks of unemployment compensation.