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Old 02-19-2013, 05:31 PM
 
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Default Sequester and extended Unemployment benefits

I saw last week on a news report about the repercussions of sequestration taking effect and saw that extended unemployment benefits would be affected, but the report did not say how, i.e., the suspension of payments, the deadline of December, 2013 being eliminated, etc.

If anyone has heard or read what will occur to extended UI benefits if sequestration takes effect March 1, please post.


Thank you.
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Old 02-19-2013, 05:41 PM
 
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This is a good, nearly-readable explanation:

Budget sequestration - Wikipedia, the free encyclopedia

The GRHDRA created a congressional procedure, now known as sequestration, that draws attention to the Federal government's budget. Before the GRHDRA was passed, multiple appropriation bills would be passed by Congress creating a total sum of government spending that exceeded overall budget goals. Under sequestration, if this total exceeds the annual Budget Resolution, spending is automatically cut. Sequestration should reduce spending across the board (affecting all departments and programs by an equal percentage), but Congress has at times exempted certain programs (such as Social Security). Such exemptions create greater burdens for those programs that are not exempted. The amount exceeding the budget limit is held back by the Treasury and not transferred to the agencies specified in the appropriation bills. [5]


If sequester happens (doubtful), EUC funding could stop, could be only at partial payment, or could not be affected at all. This is another of those "can't read it 'til you pass it" type of things. They don't announce what will be specifically affected by sequester, and to what degree, because they don't know, and if they did, they wouldn't tell us.
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Old 02-19-2013, 05:47 PM
Status: "want to be beach bound, again, soon! lol" (set 22 days ago)
 
Location: home state of Myrtle Beach!
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I didn't think this would affect EUC. Ariadne22 will know.
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Old 02-19-2013, 06:13 PM
 
90 posts, read 144,712 times
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EUC is a federally-funded program. If sequester occurs (again, doubtful), EUC is as fair game as any other federally-funded program.

I suspect in the event of sequester EUC would be in the "try to protect" pile because it is at its base economic stimulus. States would positively HOWL if all of their extended unemployed stopped receiving (and spending) their UI checks.

EUC payments are subject to sequestration. The fact of that is easily Google-able. Many states issued fact sheets on it last fall when the January fiscal cliff deadline was first looming.

Just because EUC is subject to sequestration doesn't mean benefits will be affected. But it doesn't mean they won't be, either.

Like I said, the gov't is not going to issue any hard facts on what programs will be affected by sequestration or to what degree because they do not at this time know, and if sequestration occurs it will be at 11:59:59 on expiration date and then we will all know. It's like a late night meeting of the Board to decide whether the company will bankrupt or not. The employees go home at the end of the day not knowing if the next morning will bring a normal workday or a pink slip.
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Old 02-19-2013, 06:15 PM
 
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Here's some info I found on it:

http://www.fas.org/sgp/crs/misc/R42050.pdf

On page 16:

Quote:
Section 256(i) of the BBEDCA reiterates the exemption from sequestration (provided under
Section 255) of federal loans to the states for payment of unemployment benefits. Additionally,
Section 256(i) exempts regular unemployment compensation (UC) benefits from sequestration.
This exemption is extended to UC for former federal workers (UCFE) and UC for former
servicemembers (UCX). Generally, these benefits have a duration of up to 26 weeks and are paid
by state unemployment taxes. However, Section 256 specifically does not exempt administrative
grants to the states and the federal share of the permanently authorized extended benefit (EB)
program from sequestration.
States would be required to continue to pay their share of EB
payments. If a state’s unemployment insurance law allows it, the state may reduce the EB benefit
amount by a percentage that does not exceed the percentage by which the federal share of EB has
been reduced.
The authorization of the temporary emergency unemployment compensation
(EUC08) benefit was scheduled to end at the end of calendar year 2012, but was extended
through the end of calendar year 2013 by P.L. 112-240. The EUC08 benefit would be subject to
sequestration unless new legislation directing a different treatment were to be enacted.
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Old 02-19-2013, 06:18 PM
 
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EB is not EUC. EB, to my knowledge, has been stopped in all states. EB is the 8 or 6 weeks (depended on the state) that was available after Tier IV of EUC.
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Old 02-19-2013, 07:25 PM
 
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Default Sequester and extended UI benefits

Thank you, katheh and Someone12 for responding.

As you said, katheh, since EUC is a federally funded program, it is fair game and we probably won't know, then, what, if anything, will be chipped at - be it the payments stop altogether, partial payments, suspension, etc. - those of us on EUC will be on pins and needles until the word is given on what will/will not be available and when, should there be another pause in claim mailings and payments.
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Old 02-19-2013, 07:33 PM
 
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Best case with EUC is to absolutely, positively make sure to certify for weeks before March 1 if possible, or on March 1 if possible. I know in IL when the fiscal cliff was iffy in the end of December (when the EUC "expired") all EUC benefits absolutely stopped pending the 2013 extension. There was a delay in benefits - my husband was not able to certify for the week ending 12/29 until the 18th of January (cert date should have been 1/8) for those weeks. He simply attempted to certify every day until the state turned the "EUC button" back on and for him that was 1/18.

So, states are able to immediately turn EUC "off." The turning "on" has a bit of delay.
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Old 02-19-2013, 07:35 PM
 
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In any case I believe in the case of sequestration the law itself doesn't change, the program funding simply is not released.

If they did sequester, and EUC became one of those "must go" programs to balance the budget (ha ha), they would have to change that particular law or finding that allowed the 2013 extension. So eliminating or changing Tiers altogether would be a separate (and one would imagine, longer) process than simply non-funding due to sequester.
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Old 02-19-2013, 08:19 PM
 
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The sequester has nothing to do with the current unemployment extension that was extended in the fiscal cliff negotiations. Anyone on current EUC has nothing to worry about. The sequester is more or less about laying off different positions in the federal government.
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