Governor Douglas to accept federal unemployment insurance funds

Governor Douglas announced today that he is asking the Legislature to amend the unemployment compensation law to provide additional weeks of benefits to individuals in approved training. Under the American Recovery and Reinvestment Act recently passed by Congress, states must meet a number of benchmarks including the additional weeks of benefits to qualify for all of $13.9 million available to assist Vermont.
The training benefit is the option most consistent with the goals of the unemployment compensation program. It allows workers income while gaining the skills necessary to return to work in a new occupation commented Governor Douglas. In addition, we need to be sure we do not add extraordinary costs to a system that is already challenged.
Governor Douglas added this does not address the need for legislation to deal with the health of the unemployment insurance trust fund. The need to tackle the short and long term health of the trust fund remains a priority. We need a balanced approach that does not place too heavy a burden on Vermont s employers nor our unemployed. These additional funds will help, but do not solve the problem added the Governor.
Vermont will receive $4.6 million of stimulus funding because the state already has what is called an alternative base period for qualifying for unemployment insurance. The alternative base period allows individuals applying for benefits to use the most recent wages to qualify. Most states use the first four of the last five calendar quarters of wages immediately preceding the application to determine if the worker has earned enough to qualify for unemployment compensation.
The Governor supports this additional benefit because it is most closely related to the original intent of unemployment insurance which is exclusively an employer paid program. commented Patricia Moulton Powden, Commissioner of the Vermont Department of Labor. This provision will assist laid off Vermonters needing to make a career change due to the decline or demise of their former occupation. She added.
The department of labor estimates the training benefit will cost Vermont employers an additional $1million a year. The expansion will offer additional benefits to persons separated from a declining industry or who were involuntarily and indefinitely separated as a result of a permanent loss of jobs at their place of employment. The person must exhaust all other benefits and be enrolled and making satisfactory progress in a pre-approved state training program to qualify.
If Vermont s law is amended to meet federal requirements the additional $9.3 million will be transferred into its account in the unemployment trust fund and will be available to pay these expanded benefits to unemployed workers. The legislature must approve these changes and decide on an effective date for this expansion to become law.