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Anyone else get a letter stating their unemployment payment will drop 20% between June 30-sept 30 due to the federal sequestration?
Actually, it is 22.2% - identical to what NJ is doing:
Quote:
Under the sequestration cuts all Maryland EUC claimants must have their EUC benefits reduced by 22.2% beginning with the claim week ending July 6, 2013. The 22.2% required reductions reduce both the EUC weekly benefit amount and the total amount of EUC benefits which may be paid.
We've had several discussions scattered among more than a few threads beginning in April.
As OHGreat said, each state has its own way of dealing with the sequester. This thread is a good opportunity to keep all this information on one thread, so I'll post what we know so far.
Most states implemented the normal cut of 10.7% effective week ending 4/6. Those states, to name only three, include:
New York
Pennsylvania
Wisconsin
Other States delayed their cuts, so use different percentages and/or methods. These are:
CA - 17.69% reduction for all tiers begun 4/28 or later.
IL - 16.8% reduction for all EUC recipients, effective week ending 6/1
FL - Tier 3 reduced to 3 weeks only, beginning 5/26 (FL max Tier 3 benefit is 6-7 wks, not 9)
MD - 22.2% reduction for all EUC recipients, effective week ending 7/6
NC* - EUC program ended for everyone via legislation, effective 7/1
NJ - 22.2% for all EUC recipients, effective week ending 7/6
SC - No EUC Pmts for weeks ending 5/18, 7/13, 8/31
At present all sequester cuts are scheduled to end September 28th. However, if Congress doesn't come to an agreement, it is possible that date could change.
Why does the percentage vary so much amongst the different states? Seems unfair that some states are losing money. Especially considering they are two of the highest cost of living states.
Why does the percentage vary so much amongst the different states?
Because these states began the cuts later and most under different circumstances. Look at that list.
CA didn't begin until the end of April - and only for anyone beginning a new tier. If you were on a tier, you exhausted that tier without a cut. The new tier experienced the cuts.
MD and NJ have begun implementation so late, they need to cut 22.2% to make up for the three-month delay.
FL began late and decided no one gets more than three weeks on Tier 3.
and so on and so forth.
In the end, the overall $$ cut from EUC has to more or less be the equivalent of an across-the-board cut of 10.7% begun with week ending 4/6. Most states kept it simple and did the 10.7%.
Quote:
Originally Posted by Liberty12
Seems unfair that some states are losing money. Especially considering they are two of the highest cost of living states.
It seems those which didn't implement 10.7% in April, for the most part, were the higher unemployment states like CA, IL, NJ, SC.
The cuts are unfair to those just beginning EUC. But for those almost done with EUC, they've experienced very little cost.
In the end, the states with the highest rates of Unemployment and COL, will have the fewest number of claimants affected - which I think was the reason for the delays in these states and California's - as only CA can do - unique approach to having the cuts affect new tiers begun 4/28 or later. This way everyone isn't hit at once. CA has 400,000 people collecting EUC. So, to minimize the impact on the economy, they chose to phase in the cuts only as people began new tiers.
Same with states like NJ/MD - instead of having reduced payments since April 6, claimants have had a three-month reprieve and will only have benefits subject to the sequester for three months, instead of six.
Last edited by Ariadne22; 06-18-2013 at 06:55 PM..
My unemployment ended at 126 weeks. A month later I got an email saying Illinois gets 20 or so more weeks. I'm up to week #135 now and still going. The sea-quest-ter will cut me short...just living it up till it does!
NJ - 22.2% for all EUC recipients, effective week ending 7/6
Forgive my ignorance on this issue, but I assumed this would just affect the tier 1 unemployment, the extended unemployment the federal government is offering the states. I assume it shouldn't affect the 26 weeks covered by the state's unemployment insurance program? That's what the deduction from my paycheck for the last 25 years was suppose to be used for after all isn't it? I just got my layoff notice, I'll be joining the ranks of the unemployed on July 26th, I assumed I would be collecting the full NJ unemployment amount when I file.
Quote:
Originally Posted by Ariadne22
At present all sequester cuts are scheduled to end September 28th. However, if Congress doesn't come to an agreement, it is possible that date could change.
That's not my understanding of the sequester. The sequester is suppose to be a ten year plan to cut funding to federal agencies to attempt to balance the budget. My understanding is the cuts will be bigger next year, and larger the 3rd year and so on. If the affects of the sequester were over on September 28th, I wouldn't have lost my federal contractor job due to funding cuts. The 2014 budget for federal agencies is bleak, were I work they cut 10% of the contractor workforce in April and they cut another 20% at the end of May.
Last edited by TechGromit; 06-20-2013 at 10:05 PM..
Forgive my ignorance on this issue, but I assumed this would just affect the tier 1 unemployment, the extended unemployment the federal government is offering the states. I assume it shouldn't affect the 26 weeks covered by the state's unemployment insurance program? TI assumed I would be collecting the full NJ unemployment amount when I file.
The sequester cuts affect federally-funded EUC, only. In most states, all tiers are affected (w/except. of FL), depending on what tier the recipient is collecting at the time. As stated upthread:
Quote:
IL - 16.8% reduction for all EUC recipients, effective week ending 6/1
FL - Tier 3 reduced to 3 weeks only, beginning 5/26 (FL max Tier 3 benefit is 6-7 wks, not 9)
MD - 22.2% reduction for all EUC recipients, effective week ending 7/6
NC* - EUC program ended for everyone via legislation, effective 7/1
NJ - 22.2% for all EUC recipients, effective week ending 7/6
SC - No EUC Pmts for weeks ending 5/18, 7/13, 8/31
You will receive your full NJ state benefits.
Quote:
Originally Posted by TechGromit
That's not my understanding of the sequester. The sequester is suppose to be a ten year plan to cut funding to federal agencies to attempt to balance the budget. My understanding is the cuts will be bigger next year, and larger the 3rd year and so on. If the affects of the sequester were over on September 28th, I wouldn't have lost my federal contractor job due to funding cuts. The 2014 budget for federal agencies is bleak, were I work they cut 10% of the contractor workforce in April and they cut another 20% at the end of May.
I did say:
Quote:
Originally Posted by Ariadne22
At present all sequester cuts are scheduled to end September 28th. However, if Congress doesn't come to an agreement, it is possible that date could change.
For now, in most states, the sequester cuts to EUC are scheduled to end September 28, 2013 per:
New Jersey:
Quote:
The reductions will remain in effect for benefits paid through September 28,2013 (which is the end of the federal fiscal year). It is unclear at this point if benefits will remain the same or face additional reductions at that time.
Under the sequestration cuts all Maryland EUC claimants must have their EUC benefits reduced by 22.2% beginning with the claim week ending July 6, 2013. The 22.2% required reductions reduce both the EUC weekly benefit amount and the total amount of EUC benefits which may be paid.
When payments are made for the weeks ending July 6, 2013 through September 28, 2013, the "Weekly Benefit Amount" displayed on the Citibank website will reflect the reduced, sequestered weekly benefit amount.
The maximum benefit entitlement of EUC will be reduced by 10.7 percent for all payments for weeks that begin on or after March 31 through Sept. 28, 2013.
In South Carolina, anyone receiving EUC benefits from March 1, 2013 through September 30, 2013 will not receive unemployment insurance payments for claim weeks ending May 18, July 13 and August 31.
California on its website indicates the sequester will run through the end of the year. Illinois mentions no end date. Both states began sequester cuts later and may have agreed with the USDOL to continue cuts to year-end.
Federally-funded EUC is not a permanent program for the federal government. Congress revisits the continuation of this program every year.
Under current legislation, payment of all federal extension unemployment benefits end December 28, 2013. Congress may or may not continue those benefits next year. Chances are they may extend these benefits in some form. Congress did a major overhaul of the program in 2012, which they extended into 2013.
Granted, if the EUC program is extended and the sequester continues, there will no doubt be further adjustments.
No one in Congress wants the sequester to continue for ten years. Hopefully, in my lifetime, Congress will find a way to resolve their issues without across-the-board cuts to everything forever.
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