Unemployment insurance system improved...and hopefully more to come
Chuck Sheketoff
Laid-off Oregon workers who recently entered or returned to the labor force will be more likely to qualify for unemployment benefits as a result of a new law signed today by Oregon Governor Ted Kulongoski.
It’s great news for Oregon’s economy and workers. Let’s hope the Governor gets the opportunity to sign other bills that will fully bring our unemployment system into the 21st century and better meet the needs of unemployed workers.
Until now, Oregon’s unemployment insurance (UI) rules disregarded up to six months of recent work experience in determining whether an applicant met hours and earnings requirements. These outmoded rules excluded many low-income workers.
Senate Bill 462 signed by the Governor today allows workers who don’t qualify under the traditional formula to count more of their most recent work experience.
The alternative formula will extend UI benefits to more than 6,000 Oregon workers each year according to Oregon’s Employment Department estimates.
Unemployment insurance helps stabilize the economy and working families by putting some money in the pockets of laid-off workers, so all of Oregon benefits when we expand the pool of workers covered.
Legislators had extra incentive to approve SB 462. With its enactment, Oregon’s unemployment insurance trust fund qualifies for about $91 million from the federal government, which has been encouraging states to modernize their unemployment insurance systems. That money can be used only to improve the unemployment system that is seeing record numbers of claimants, not to address the state’s revenue shortfall.
Oregon still has much room for improvement in its UI system. Lawmakers should adopt pending bills that would (1) eliminate barriers for part-time workers [SB 463], (2) allow workers to get their unemployment benefits without having to wait a week [HB 3140, which is about to be gutted and stuffed], (3) boost benefits for workers who have dependent children [HB 3045], and (4) permit low-wage workers to complete a job training program while they collect unemployment benefits [SB 461].
There’s no good reason to deny unemployed Oregonians these benefits. Other states have implemented those reforms and so should Oregon.
With so many families unemployed and with new federal funds to help pay for changes, there’s no better time than now to make the necessary improvements to the system. Enacting SB 462 was a great first step, but the legislature still has work to do. Shouldn’t shoring up our unemployment system be “job number one” for the legislature during a recession?
Chuck Sheketoff is the executive director of the Oregon Center for Public Policy. You can sign up to receive email notification of OCPP materials at www.ocpp.org</p
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connect with blueoregon
Apr 21, '09
Chuck, You seemed to omit one key provision. The oregon legislature decided in the disconnect bill to tax the unemployment benefits stuggling oregonians receive. So much for caring about the least fortunate among us.
rick metsger
11:13 p.m.
Apr 21, '09
Not so. The partial exemption from taxation was not law at the time of the bill ending rolling reconnect, and the chairs of the House and Senate revenue committees both noted that the 2009 legislature will be visiting all connection questions before adjournment sine die. All that bill did was end automatic reconnect.
Oregon law today taxes UI benefits, and even if we connect to the UI provision in the recovery bill, we will still be taxing much of Oregonians' UI benefits. I have yet to see any of the people who voted against the bill ending rolling reconnect turn in a bill that would exempt all UI from state income taxes.
9:26 a.m.
Apr 22, '09
In a future post, could you tell us what needs to be done to shore up the unemployment system?
Apr 22, '09
Chuck, what is "the bill ending rolling reconnect"?
11:35 a.m.
Apr 22, '09
Ed - see Legislature Has Protected Oregon by Flying With Her Own Wings.
Kari - the list in the above post. I will also do a separate post, though you should also look at this complete list of the OCPP fact sheets on unemployment bills cited above.
Apr 22, '09
My previous question was in pursuit of understanding the exchange between Chuck and (Sen.?) 'rick metsger'. I believe I have arrived there with this additional knowledge from the IRS website: "Under the American Recovery and Reinvestment Act (ARRA), the first $2,400 of unemployment benefits an individual receives in 2009 are tax free."
Apr 22, '09
"Shouldn’t shoring up our unemployment system be “job number one” for the legislature during a recession?"
Sorry, they're too busy with "honest pint" legislation.
Apr 23, '09