Rhode Island news
Unemployed in R.I. to get a boost in benefits
08:28 AM EST on Friday, February 13, 2009
Raymond J. Filippone, assistant director of the Department of Labor and Training
Providence Journal / Mary Murphy
CRANSTON — More than 35,000 out-of-work Rhode Islanders could soon start receiving an extra $25 in their weekly unemployment benefits as a result of the federal economic stimulus bill that is close to approval.
In addition, more than 17,000 Rhode Islanders whose benefits would have run out later this year would be able to continue collecting, state officials said yesterday.
The provisions would take effect shortly after the legislation is signed into law by President Obama, said Raymond A. Filippone, assistant director of the state Department of Labor and Training, who oversees the state’s unemployment insurance program.
Rhode Island has a 10-percent unemployment rate, the highest in more than 30 years and one of the highest in the nation.
Congressional conferees on Wednesday agreed on a compromise economic stimulus bill; the full House and Senate are expected to approve it as early as today, and Mr. Obama has indicated he will sign it into law.
State officials are already preparing to put the measures into effect, Filippone said in an interview yesterday at the Department of Labor and Training’s headquarters in Cranston.
One provision would generally boost the amount of benefits by $25 a week. As of Jan. 31, about 35,000 people — most of them Rhode Islanders — were collecting some type of unemployment benefits through the Department of Labor and Training. The average benefit is about $360, he said.
Thus, someone who now receives $360 a week would soon see an increase of about 7 percent in benefits.
Overall, the increase — paid entirely with federal funds — would bring an extra $875,000 or so in unemployment compensation into Rhode Island each week.
Another provision would extend benefits for those who would otherwise run out. It would generally apply to people who would exhaust their unemployment benefits on or after March 29, Filippone said.
Between 400 and 500 Rhode Islanders exhaust their benefits each week, according to Filippone and agency spokeswoman Laura Hart.
It is possible, then, that more than 17,500 Rhode Islanders would wind up exhausting their unemployment benefits by the end of this year. Under the economic stimulus bill, they would be able to continue receiving benefits, Filippone and Hart said.
The provisions will bring needed help to the unemployed, said Kate Brewster, executive director of The Poverty Institute at the Rhode Island College School of Social Work, which analyzes tax and budget policies on behalf of low-income people.
“It’s certainly a step in the right direction,” she said. “It’s good for the people receiving the money and it’s good for the economy of Rhode Island,” because beneficiaries are likely to spend their money in Rhode Island, Brewster said.
The extra $25 will be added automatically to a beneficiary’s weekly payment, Filippone said.
But those seeking extended benefits will have to phone the state agency’s unemployment insurance call center when prompted.
People who receive unemployment benefits must call an automated phone system each week to certify, or verify, their status to continue receiving benefits.
If you are close to running out of benefits when you phone in, a recorded message will advise you to dial the agency’s unemployment insurance call center staff so that you can go through the steps necessary to obtain extended benefits, Filippone said.
Because of the state’s high unemployment rate, the call center has been swamped with calls. Many callers have been on hold for two hours or more; others cannot get through. The new provision involving extended benefits will add to the call volume.
But the agency is in the process of hiring 40 new staffers, and their training should be completed by the time the extended benefits provision kicks in late next month, so they should be available to help handle the extra calls, Filippone said.
In general, someone who is laid off is eligible for a basic 26 weeks of unemployment benefits, paid for through the state’s unemployment insurance trust fund.
The federal government has extended benefits beyond 26 weeks, but without the federal stimulus legislation, the extended benefits would have stopped in late March or so.
Assuming that the legislation is enacted, the system will continue as it currently operates. As a result, an unemployed worker could end up collecting benefits for a total of up to 79 weeks when benefits from both the state’s programs and federal extensions are taken into account:
•A maximum of 26 weeks through the state’s unemployment insurance program related to an initial claim for benefits.
•A maximum of 20 additional weeks of federally provided benefits under a federal unemployment insurance program administered by Rhode Island.
•A maximum of 13 weeks of federally provided benefits, administered by Rhode Island.
•A maximum of 20 weeks under Rhode Island’s extended benefit program, paid for jointly by the state unemployment trust fund and federal funds.
For the month of January, the state Department of Labor and Training distributed about $49 million in unemployment benefits, Filippone said.
Rhode Island’s maximum weekly unemployment benefit is $528. When additional payments for dependents are included, the weekly maximum is $660.
Beneficiaries may elect to receive their benefits either by direct deposit or on a stored value card (similar to a debit card).
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