Beshear appoints task force on unemployment insurance

FRANKFORT –Gov. Steve Beshear appointed a task force Friday to study and propose changes to the state’s financially strapped unemployment insurance trust fund.

“In these difficult economic times, it is imperative that we address head on a critical issue for Kentucky that has been overlooked in the past,” Beshear said in a statement.

In recent years, Kentucky has paid out more in unemployment benefits than it has taken in through employer contributions – drawing down reserves accumulated in the fund.

Earlier this year, Beshear requested and received $185 million in federal dollars to keep the state fund solvent in the first three months of 2009.

Unemployment insurance provides short-term benefits for those unemployed through no fault of their own. The maximum weekly payment is $415.

In light of the current economic recession, the state fund has been depleted far beyond expectations, indicating a multimillion dollar negative balance by the end of this calendar year, Beshear said.

The 18-member bipartisan task force will work to address this challenge, he said.

It includes 12 members appointed by the governor representing employers and employees, three members of the House appointed by House Speaker Greg Stumbo and three members of the Senate appointed by Senate President David Williams.

Beshear has directed the task force to immediately address a review of extended benefits available through federal stimulus dollars.

He said Kentucky is receiving all allowable unemployment benefits for which it is eligible under the law.
Currently, the state pays out 59 weeks of benefits including 26 weeks of regular and 33 weeks of extended benefits.

When Kentucky hits the trigger of a monthly “uninsured unemployment rate” at or above 5 percent to implement extended benefits available through the federal stimulus package, those who are eligible will receive another 13 weeks of assistance with the possibility of an additional seven weeks if current law is changed to impose an alternate trigger, Beshear said.

Kentucky’s current rate is 4.77 percent.

“We will ensure that Kentuckians receive all benefits to which they are entitled under the federal stimulus” Beshear said.

“If we are to make changes in the law, we should do so only after a thorough review of the entire unemployment insurance system to ensure that there are no unintended consequences for Kentuckians who depend upon these benefits.”

Cathy Lindsey, a spokeswoman for the fund, said the state does not think anyone is going to lose any benefits.

The National Employment Law Project, a workers’ rights advocacy group, told The Courier-Journal that Kentucky will lose $45 million in federal money because it failed to change the state law to allow unemployed workers to receive up to 20 more weeks at no cost to the state when their benefits are exhausted.

Lindsey said the state is interested in finding out how the group came up with that projection.

Beshear also has signed an agreement with the U.S. Department of Labor to temporarily increase the weekly payout by $25.

Education and Workforce Development Secretary Helen Mountjoy will chair the new task force.

Its other members are Sen. David Givens, R-Greensburg; Sen. Denise Harper Angel, D-Louisville; Sen. Gary Tapp, R-Shelbyville; House Speaker Pro Tem Larry Clark, D-Louisville; Rep. Ron Crimm, R-Louisville; Rep. Rick Nelson, D-Middlesboro; Dave Adkisson, Kentucky Chamber of Commerce; Mike Downing, RSVP Homecare; Gay Dwyer, Kentucky Retail Federation; Ken Koch, AFL-CIO; Jim LeMaster, Kentucky Association of Manufacturers; Greg Meyer, UPS ; Gary Osborne, International Brotherhood of Electrical Workers; Tom Padgett, Kentucky Home Builders Association; Larry Roberts, Kentucky State Building and Construction Trades Council; J. Chris Sanders, United Food and Commercial Workers Union, Local 227; John Stovall, Teamsters, Local 783; and Ernest R. Thompson, United Steelworkers.

–Jack Brammer

Filed Under: Barack Obama • David Williams • Federal Government • Greg Stumbo • State Government • Steve Beshear