Stimulus money will extend jobless benefits

The federal stimulus package includes a significant amount of money to bolster Nevada's unemployment insurance program.

As of December, 9.1 percent of Nevada workers were unemployed. Economists say they expect that number to increase to double-digit levels before eventually declining.

Cindy Jones, who manages the program for the Department of Employment, Training and Rehabilitation, told the Assembly Commerce and Labor Committee on Monday that most of the extensions and expansions in unemployment benefits come with few, if any, strings. That is a significant difference from other parts of the stimulus, which require the state put in money or restore budget reductions to qualify.

Jones said that with potential expansions and extensions added together, someone could collect unemployment for as long as 79 weeks.

She said unemployment benefits will be increased by $25 a week, funded by the federal government. In addition, when out-of-work Nevadans exhaust their federal benefits, they will be eligible for extended state benefits. And she said Nevada qualifies for 100 percent reimbursement of those expenditures as well.

Jones said Nevada can access up to $77 million if it changes one law to implement what is called the "alternate base period." Current law calculates whether someone is eligible for unemployment checks by totaling their earnings from the first four out of the most recent five calendar quarters. The alternate base would allow the fifth and most recent quarter to be added to that total to see if that raises the individual's earnings enough to qualify.

She said the state already has the other requirements in place to get that money.

Jones said basic Nevada unemployment insurance provides benefits up to 26 weeks. That has been extended another 20 weeks by the Congress and can be extended another 13 weeks by the stimulus package. Then, she said, the state has a 13-week extended benefit period. And by changing a state law, those out of work could get an additional seven works for a total of 79 weeks of benefits.

Jones said all of that is covered, at least for the next two years, by federal funding.

Jones said that because of the depth of the recession, Nevada is expected to wipe out its unemployment trust fund by the end of this year. Jones said that when that happens, the federal government routinely loans states money so that they can continue paying benefits. As part of the stimulus, she said the government is not charging interest on any loans through the end of this calendar year.

Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.