Unemployment Insurance Extension

Unemployment Insurance Extension

Unemployment Extension 2010: Hr 4213 unemployment extension repayment checks to create appearance

Unemployment Extension 2010: Hr 4213 unemployment extension repayment checks to create appearance extremely soon to public who be inflicted with praise to receive the assistance. Pro around 2.5 million American it brings wish and aid

Pro the benefit of out of work public inside America an unemployment extension repayment be inflicted with been standard by the assembly and the board. Equally the midterm elections are to befall held inside November, this want befall a fraction of a top campaign come forth.

Household voted 272-152 to hurl the repayment extension to the fair household pro President Osama's signature. However the argument ended the cost the legislation equally well equally the condition of the nation's nation would not occur to an aim.

A conflict linking the view of Republicans and Democrats was continued so far. Democrats blamed Republicans with the intention of they were gradual otherwise not interested inside validation of this extension. "The household acted inside May, other than pro six weeks board Republicans blocked unemployment insurance," understood sales rep.

Sander Levin, D-Mich. He chairs the group. He furthermore understood."They stood not on the side of, other than inside the method of millions of Americans."

However Republicans be inflicted with been constant inside continuing on increasing deficits. Sales rep. Charles Boustany, R-La understood, The other side says with the intention of these unemployment repayment stretching to almost two years are looked-for and should befall added to the $13 trillion debt, still equally they aver their trillion-dollar stimulus preparation has been a accomplishment by creating millions of jobs.

NH’s jobless get more benefits under new law

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NH’s jobless get more benefits under new law

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CONCORD, N.H. (AP) — Thousands of jobless New Hampshire workers whose unemployment benefits are exhausted or will be by the end of the year qualify for additional weeks of benefits under a new federal law.

State officials will be mailing letters to people who may qualify for the extra weeks of unemployment. Officials are urging people who think they may qualify to apply. Since it is a new program, unemployed workers will have to fill out a blue application form at their nearest Employment Security office.

New Information Released Concerning UIA Extension in Michigan

unemployment benefits

Michigan's Unemployment Insurance Agency (UIA) has issued an informational memo, designed to more fully explain exactly how the new unemployment extensions, passed by Congress and effective November 8th, will work.

According to the memo, available for download here, those who have already exhausted their regular and extended benefits should begin receiving letters in the mail, by November 24th, with instructions on how to apply and certify for the new extensions. Those who have not, yet, exhausted their benefits, but will do so by year's end, will receive further instructions as they continue to certify through Marvin.

Under the new law, those whose benefits have or will expire by December 31st will qualify for the first extension, called Tier III, which will be paid retroactive to date of passage of the bill, November 8th. Payments should begin sometime in December. Initially, the extension will run for 14 weeks. There is another 6 weeks available, but that extension, called Tier IV, also expires on December 31st. So, as it stands now, no one will be able to qualify for the additional 6 weeks of benefits, since one must first exhaust the Tier III period of 14 weeks and there are less than 14 weeks left in the year. This is due to the delay in getting the bill through Congress. Congress has stated, however, that they will revisit the issue to try and correct this discrepancy and further extend unemployment benefits into 2010. Only time will tell.

One little known aspect of the new bill is that it also added one extra week of benefits to the current Tier II extension, increasing it from 13 to 14 weeks. Those who are now collecting on Tier II benefits will receive a redetermination in the mail, adding the extra week of benefits. The UIA expects to begin making payments on the new extension as quickly as possible. They estimate that 70,000-80,000 unemployed Michigan workers, who have exhausted all unemployment benefits, may qualify for the new extension.

In hard times, the jobless fight harder for benefits

unemployment benefits

RALEIGH When Jason Smith was fired from his job as a graphic designer earlier this year, he did what some might consider unusual: He filed for unemployment benefits.

And when the Employment Security Commission denied his claim, Smith did something almost unheard of a few years ago. He hired a lawyer to take on his former boss for his weekly $371 benefits check.

"I felt wrongly fired," Smith said. "I fight for the things I think I deserve."

With the state's unemployment rate at 10.8 percent, the scarcity of jobs is stiffening the resolve of the unemployed to collect their benefits - even when they've been fired. At the same time, many employers are just as determined to block the benefits, because the payouts can increase a company's costs.

So far this year, more than 54,000 benefits appeals have been filed. At that rate, David Clegg, the commission's deputy chairman and chief operating officer, expects appeals will set a record this year. To handle the crush, the ESC this year has added 87 officials to handle initial claims and appeals.

"In times of economic recession, people will have a greater incentive to appeal, when in normal circumstances they'd rather get a job and move on," Clegg said. "Historically there's not been enough money in it. Now you're looking at claims amounts that are quite sizable."

As far as financial incentives go, the past year has been a game-changer: Congress just extended the number of months a person can receive unemployment benefits by another 20 weeks for states where unemployment rates are above 8.5 percent, such as North Carolina.

The extension, the fourth this year, increases the maximum benefit from $13,130 over about 26 weeks to about $45,000 over 99 weeks. Many people who now collect benefits in North Carolina will qualify for the extension.

The function of the benefits is to stabilize the state's economy, Clegg said. The ultimate beneficiaries are the stores and businesses where the unemployment benefits are spent on groceries, clothing and bills.

So for someone to lose out on jobless benefits in North Carolina, it takes more than getting fired, Clegg said. A company has to prove that the worker was fired for fraud, misconduct or gross negligence. Workers who quit can also qualify for benefits if they can show extenuating circumstances, such as burdensome work schedules or overwhelming tasks.

"It's not a feel-good issue," Clegg says. "The law says individuals who are unemployed through no fault of their own should receive transitional benefits."

In cases where a worker bore "substantial fault" for his or her dismissal, the ESC has the option of awarding unemployment benefits without charging the company. The ESC can award partial benefits to the applicant by limiting the benefits period and not allowing extensions.

That's what happened to Annie Parker, a 63-year-old nurse who worked four years at Brian Center Health and Rehabilitation in Durham. She was fired in 2008 after signing the wrong sheet that recorded drugs to be dispensed to patients. Parker lost in the first round. On appeal, the ESC hearing officer concluded the mistake was serious but did not rise to the level of misconduct. She won $494 a week for up to 22 weeks.

The state's benefits policy irritates some business owners.

The more a business burdens the system by putting people on unemployment benefits, the more that business has to contribute to the benefits pool. Conversely, companies whose former workers don't collect state unemployment benefits have reduced payments over time, in some cases down to zero.

Companies that have large or repeated layoffs can be charged as much as 5.7 percent of the first $19,800 a year paid to each employee. A large company with several thousand workers could end up owing several million dollars a year if it pays the maximum rate. For smaller businesses, even one or two people collecting benefits can hurt the bottom line.

Fayetteville lawyer Sharon Keyes fired a paralegal after just eight days on the job because she wasn't qualified. When the paralegal filed a claim for $197 a week in benefits, Keyes tried to block it, arguing that as a small business owner she should be able to decide whom to hire and whom to fire.

The ESC disagreed and ruled in the former paralegal's favor three times before Keyes finally gave up last year.

Of course, the commission can just as easily side with the former employer and deny benefits.

INC Research in Raleigh, which does testing for pharmaceutical companies, won after it denied benefits to a former project research associate who had been fired for bringing her sister to work. Similarly, an office manager at Carolina Medicorp Enterprises in Winston-Salem, who quit after failing to comply with a performance improvement plan, had her claim denied on appeal.

Usually an unprepared worker is no match for an experienced corporate human resources department in a legal proceeding at the commission, said Monica Wilson, a Durham lawyer who used to work as an ESC hearing officer.

Wilson's firm represented more than 1,000 clients last year. So far this year, it has handled appeals for nearly 1,400 jobless people. Her firm charges $350 per case, with additional fees at each successive level of appeal. Employers don't cover the costs if their former workers win.

One of Wilson's clients was Jason Smith, the graphic artist. His former boss told the ESC that Smith was fired because he was a bad fit.

As he awaited the outcome of his appeal, Smith, who lives in Tobaccoville, went into debt, falling behind on child support payments, credit card bills and his car payment. During the three months it took to win his case, Smith and his wife and children survived on food stamps, help from relatives and an insurance payment for water damage to his home.

"We were really hurting," Smith said

While some like Smith are getting savvier about hiring lawyers, most of those appealing an ESC decision still try to go through the process on their own. Lawyers have handled only an estimated several thousand of the 54,000-plus appeals logged this year.

Appealing cases requires patience, usually several months to await an outcome as the ESC plows through a backlog of cases.

Anthony Irving, who quit his custodial job at the Veterans Administration Medical Center in Durham last year, spent more than three months waiting for benefits after his claim was initially denied in December.

Irving, 48, began collecting $219 a week in benefits from the state this year.

"I would have been homeless" without the weekly payments, Irving said. He resigned from his job of eight years because of health problems. During the delay he survived on food stamps and stopped paying rent.

He's now without medical benefits, struggling with health problems and is looking for part-time work because his ailing body can't handle a full-time schedule.

"My side hurts 24-7," Irving said. "Some days I can't get out of bed."

Flow of money from Albany likely to ebb

nys unemployment insurance

As New York state faces what could be its toughest budget since the early 1990s, local groups and government bodies are bracing for the ripple effect these cuts could have on them.

Not only do Gov. David Paterson and the state Legislature have a difficult budget ahead, but it’s likely Albany will have an even harder time ironing out kinks in the budget for years to come.

Simply put — the Empire State is nearly out of cash, which is going to cause pain across New York, including in the Mohawk Valley.

“This is a very significant and challenging time,” said Susan Lerner, executive director of Common Cause New York. “All indications are that our state’s economy has not yet recovered. We’re very, very dependent on the financial industry that has been hit hard.”

Among the ways life could be affected in our region:

* State and local government. There are more than 8,000 state jobs in Oneida and Herkimer counties including the prisons, the state Office Building and psychiatric center. How many of them are safe?

* Area hospitals and health centers. Some local hospitals are already anticipating cuts and have taken measures to keep their budgets trimmed.

* Local nonprofits. Funding has already been cut from many nonprofits, even as the need for services in the Utica area grows amid the difficult economy.

* School districts. State legislators are considering mid-year cuts to education. Further cuts could mean re-examining some programs, such as advanced placement courses, said Oneida-Herkimer-Madison BOCES Superintendent Howard Mettelman.

“Our region is extremely state aid dependent,” he said. “When state aid is frozen or cut … either programs get cut, or quite frankly, there is a shift to our local taxpayer.”

Despite the dismal outlook, some Mohawk Valley legislators say they are committed to finding alternatives to cutting money for hospitals and schools.

“I am very concerned about proposed unplanned mid-year cuts to public safety, health care and education,” Assemblywoman RoAnn Destito, D-Rome, said. “Spending cuts and structural reforms will be necessary to avoid further harm to New York’s overall fiscal condition.

However, I do not want to accept any shifts in state obligations onto the local property taxpayers of our community.”

Layoffs, program cuts?

Paterson’s midyear plan to reduce the current fiscal year’s $3.2 billion deficit includes politically sensitive cuts to schools and health care protected by Albany’s strongest lobbies.

Without cuts, though, Paterson says, the 2010-11 budget due April 1 will face a $10 billion deficit. The budget adopted in April was about $131 billion.

“Unless immediate action is taken,” Paterson told lawmakers Monday in a rare joint session of the Legislature, “we will have challenges to our state’s finances and to our cash flow in four and a half weeks.”

Oneida County has been hit hard already, with the state decreasing its share of money handed down to the county, Executive Anthony Picente said.

“The biggest thing that’s affecting us now, and has been very difficult to plan for, is the delay in reimbursements from the state because of their cash flow problem, which provides us cash flow problems,” Picente said.

So what happens if the state keeps delaying or cutting aid to the county? The county might have to make trims affecting public works, law enforcement and public health, he said.

“We’ve been holding the line the best we can, where do we go from here?” Picente asked. “There might have to be layoffs and programs that go to the wayside.”

The county recently stopped giving $10,000 annually to the Community Food Bank of Greater Utica.

“That’s one of the casualties, as a result of lack of revenue,” Picente said.

Food bank board President Mark Wolber said the nonprofit is doing what it can without such funding. Instead, money is coming from the United Way, federal emergency funds and private donations.

“We do with what we have,” Wolber said.” If we don’t have the money, we have less food.”

The problem is, the need has increased by about 25 percent this year over last year, Wolber said. He cited the weak economy and the cost of food as factors driving people to the food bank’s doors.

Less cash, less revenue

Faxton-St. Luke’s Healthcare has already taken dramatic measures to offset financial cuts to its 2010 budget, said Michael Haile, the hospital’s senior vice president and chief financial officer.

Those cuts included at least $3 million in Medicaid from the state, and could be more if New York passes legislation increasing the state tax on health care revenue, he said.

“It just makes life harder for us,” he said. “Because there’s less cash, there’s less revenue. Cash flow for us is really what it’s all about.”

Emergency room visits have increased by about 2 percent at the hospital this year, Haile said.
In January–October of this year, there were 33,287 emergency room visits, compared with 32,542 during the same time frame in 2008.

Now, in light of 2010 cuts and anticipated revenue cuts for 2011, the hospital has limited hiring based on need, postponed capital projects and is holding off on purchasing new equipment, he said.

Hospital officials have spoken to state representatives about the problems they are facing and said their entreaties have been well-received.

“I think that health care and schools are the first place they look and I think they ought to look other places also,” Haile said.

State Sen. Joseph Griffo, R-Rome, agreed.

One alternative could be reforming and consolidating New York’s authorities, he said. The Thruway Authority could be consolidated into the state Department of Transportation to save money, for example, he said.

“We have to look at a complete mission of authority commission consolidation and elimination,” Griffo said.

‘Serious budget problems’

So where does the state go from here?

Back on the road to financial stability, said state Sen. James Seward, R-Milford.
“We cannot resort to new taxes and fees,” he said. “We’ve got to stop spending money we don’t have, and look for some alternatives without hurting our schools and hospitals.”


It could be worse

Is the budget picture worse in New York state than elsewhere?

Interestingly enough, New York state wasn’t named in a recently released study as one of the top 10 states heading toward economic disaster.

The report by the Pew Center on the States found states including Arizona, Florida, Nevada, New Jersey and Rhode Island are at risk. The report cites double-digit budget gaps, rising unemployment, and high foreclosure rates as key reasons.

Although New York didn’t make the cut, it was close, said Susan Urahn, managing director of the Washington, D.C.-based center. The Pew report was based on data available as of July 31 and scored states based on revenue changes.

“We were surprised New York wasn’t on there either,” Urahn said. “New York certainly has some serious budget problems.”

But some of the factors that led to the ratings — unemployment and the housing crisis — weren’t as bad in New York, she said.

International Forecaster November 2009 (#4) - Gold, Silver, Economy + More

nys unemployment insurance

The following are some snippets from the most recent issue of the International Forecaster. For the full 17 page issue, please see subscription information below.

US MARKETS



One of the outcomes of Fed policy of near zero interest rates is that seniors cannot live on an income of 1-1/% and that pension funds, insurance companies and endowments cannot fulfill their commitments. As yields eventually rise, although the Fed has signaled that is at least a year away, and if Japan is any guideline, we could be 19 years away from solving the problem of fiduciaries. This is part of a so-called exit strategy, which may be far, far away. As we have cited in the past, the Fed is in a box and cannot get out. If they raise rates and curtail money and credit, deflation will take over and deflationary depression will begin. Europe hasn’t raised rates, except for big oil producer Norway, but they have cut back the issuance of money and credit over the last year from 12.8% to 5.7%. In this environment Europe is tempting fate.



If and or when interest rates rise the riskier assets will be under severe pressure as will borrowers such as hedge funds and brokerage firms and banks, which still average lending of 40 times assets and whose balance sheets look like a tornado hit them.



Instead of upsetting the economy it has been suggested that excess reserves be drained form the banking system so that business and the investors do not understand what is going on. A bit of slight of hand. Then perhaps the program of the Fed monetizing CDOs, Agencies and Treasuries be ended. Such a move would send the economy plummeting into oblivion. Borrowing by government would screech to a halt and again deflation would reign.



These programs are supposed to be over, or in the case of CDOs and MBS, they are supposed to end next March. This is why the Fed cannot face an audit. They have for some time been secretly buying or arranging to have been bought all of these debt obligations illegally. The CDO, MBS program cannot be stopped. Otherwise the big banks could never clear their balance sheets and the result would be bankruptcy. Thus, until those banks, brokerage houses and insurance companies are rid of their problem assets the program cannot end. If the program ends they all go under. The toxic assets being bought by the taxpayer via the Fed will have to be worked off over the next 30 years with grievous losses. The high sounding Supplementary Financing Program is a transference of debt from banks, Wall Street and insurance to the taxpayer. Even worse is the Fed’s ability to pay interest on the money banks have borrowed from them at a higher rate of course, allowing the taxpayer to give free money to the banks, which, of course, is insane.



Even if reserves were drained it would have to encompass at least a two-year period. They propose to remove trillions of dollars from the economy and even being left with trillions in the economy after the general withdrawal of funds. Unfortunately as this occurs more than 2,000 banks will have gone out of business. These are the small and medium-sized banks that are not too big to fail. This, of course, is part of a nationalization process to consolidate banking in order to bring about world banking under the IMF. The Fed may have taken an enormous amount of debt supply out of the market, but as that has occurred a new massive amount of debt has hit the market. These capital demands are going to put big upward pressure on real interest rates over the next two years. As you can see the Fed, the elitists have no way out.



In the midst of all this professionals worldwide are losing confidence concerning the strength of our so-called recovery. That is because these professionals believe an unwinding of stimulus, less money and credit and monetization will lead to less economic activity, that would lead to depression. They are correct. Making matters worse unemployment continues to deteriorate. It is our opinion quantitative easing will be with us for at least another two years.



The commercial mortgage crisis will demolish any illusion of recovery. The paid shills and liars will again be exposed for what they are.



The U.S. ambassador in Kabul sent two classified cables to Washington in the past week expressing deep concerns about sending more U.S. troops to Afghanistan until President Hamid Karzai's government demonstrates that it is willing to tackle the corruption and mismanagement that has fueled the Taliban's rise, senior U.S. officials said.



Karl W. Eikenberry's memos, sent as President Obama enters the final stages of his deliberations over a new Afghanistan strategy, illustrated both the difficulty of the decision and the deepening divisions within the administration's national security team. After a top-level meeting on the issue Wednesday afternoon -- Obama's eighth since early last month -- the White House issued a statement that appeared to reflect Eikenberry's concerns.



Manhattan apartment rents fell as much as 9 percent in October from a year earlier as unemployment cut demand and landlords lowered rates, according to Citi- Habitats Inc.



Average rents dropped for all apartment sizes and the vacancy rate rose 0.15 percentage point to 1.86 percent, the highest since November 2008, the New York-based property broker said today in a report.



“As soon as the economy shifted and people got laid off and got no bonuses, landlords had no choice but to reduce asking prices,” Gary Malin, president of Citi-Habitats, said in an interview. “We expect rents to decrease in the next few months and vacancy rates to creep upward.”



New York City’s jobless rate reached 10.3 percent in September and the number of private-sector jobs lost in the previous year totaled 111,700, according to data on the New York State Department of Labor’s Web site. Wall Street companies lost $42.6 billion last year and income tax receipts were down 24 percent through August, according to the state comptroller’s office.



Concessions such as a month’s free rent or landlords paying real estate brokers to find tenants have helped lure renters, Malin said. Citi-Habitats in on pace to break last year’s record of brokering more than 10,500 apartment leases, he said.



Manhattan studio rents declined 9 percent from October 2008 to an average monthly rate of $1,901, Citi-Habitats said. One- bedroom apartments fell 7 percent to $2,563. The cost of renting a two-bedroom decreased 8 percent to $3,605 and rents fell 6 percent to $4,774 for three-bedrooms.



On the Upper West Side, the average rent for studios fell 13 percent to $1,786 while one-bedrooms dropped 10 percent to $2,398. The cost of a two-bedroom fell 4 percent to $3,485, according to Citi-Habitats.



Downtown rents in the SoHo and TriBeCa neighborhoods declined 14 percent to $2,067 for studios; 13 percent to $3,187 for one-bedrooms and 4.5 percent to $4,998 for two-bedrooms.



SoHo/TriBeCa had the lowest vacancy among Manhattan neighborhoods at 0.95 percent while the Upper East Side was highest at 2.41 percent, Citi-Habitats said. The rate was 2.06 percent in the Battery Park City/Financial District, 1.93 percent on the Upper West Side and 1.3 percent in Chelsea.



Lou Dobbs, the longtime CNN anchor whose anti-immigration views have made him a TV lightning rod, said yesterday that he is leaving the cable news channel effective immediately.



“Some leaders in the media, politics, and business have been urging me to go beyond my role here at CNN and engage in constructive problem-solving,’’ Dobbs said just after 7 p.m., suggesting that he would remain involved in the civic discourse, but perhaps not on television.



Last night’s program was to be his last on CNN, one of his employees said earlier in the evening. Dobbs’s contract was not set to expire until the 2011. He told viewers CNN had agreed to release him from his contract early. Well known for his political positions, Dobbs is an outlier at CNN, which has sought to position itself as a middle ground in the fractious cable news arena. The CNN employees said they did not know whether he was moving to another network.



Dobbs’s views on immigration provoked a protest by Hispanic groups. Members of the groups complained that CNN was allowing him “to spread lies and misinformation about us.’’



Last month, the New Jersey State Police were called to Dobbs’s home to investigate a report of gunfire. He suggested that his family had been singled out because of his views on illegal immigration and border security.



The Fed balance sheet contracted $30.037B for the week ended Wednesday, on a $$29.789B decline in TAF…Isn’t it strange how the stock market and commodities have pronounced movement on a Thursday that is usually in concert with the Fed’s H.4.1 that is released thirty minutes after the NYSE close?



Seven Wall Street lobbyists trooped to Capitol Hill on Nov. 9, hoping to convince Representative Paul Kanjorski’s staff that his plan to dismantle large financial firms was a bad idea.



They walked out with a sobering conclusion, according to the accounts of two attendees who requested anonymity because the meeting was private. Not only was Kanjorski serious, he planned to offer the legislation as early as next week -- and it just might pass. [No wonder JPM, C and banks have been under-performing the S&P since Oct. 14.]



The Federal Reserve will prohibit banks from charging overdraft fees on automated teller machines or debit cards, unless a customer has agreed to pay extra charges for exceeding account balances. [No wonder banks are now under-performing.]



Senate Majority Leader Harry Reid may seek to apply Medicare taxes to capital gains earned by wealthy Americans as part of health- overhaul legislation in order to scale back a proposed levy on high-end insurance plans, two congressional aides said.



Reid’s proposal, being advanced by Massachusetts Senator John Kerry, would apply Medicare taxes to non-wage income earned from capital gains, dividends, interest, royalties, and partnerships for American couples earning more than $250,000, the aides said. He’s also considering an alternative that would simply increase the 1.45 percent Medicare tax on salaries of couples who earn more than $250,000, one of the aides said.



Pelosi's 5.4% income surtax would hit capital gains and dividends. That surtax takes effect on January 1, 2011, or the day the Bush tax rates of 2001 and 2003 expire. Today's capital gains tax rate of 15% would bounce back to 20% because of the Bush repeal and then to 25.4% with the surtax. That's a 69% increase, overnight.



The BIS: Regular OTC Derivatives Market Statistics

12 November 2009

Key developments:

· Notional amounts of all types of OTC contracts rebounded somewhat to stand at $605 trillion at the end of June 2009, 10% above the level six months before,

· Gross market values decreased by 21% to $25 trillion,

· Gross credit exposures fell by 18% from an end‐2008 peak of $4.5 trillion to $3.7 trillion,

· Notional amounts of CDS contracts continued to decline, albeit at a slower pace than in the second half of 2008 and

· CDS gross market values shrank by 42%, following an increase of 60% during the previous six month period.



The volume of outstanding interest rate derivatives contracts – the largest segment of the derivatives market…rose 13 percent to $437,198bn concentrated in maturities greater than five years…



It’s clear to see the trigger for the next financial crisis. If CDS took the financial system to abyss and its notional value at its peak was estimated at about $38 trillion; what will occur if interest rates unexpectedly rise on $437 trillion of derivatives?

Stock futures point to lower start on Wall Street

unemployment insurance benefits

Wall Street is looking at a lower open as news of an improving job market fail to offset the market's disappointment over sales at Wal-Mart Stores Inc.

The Labor Department says new claims for unemployment insurance fell to a seasonally adjusted 502,000 from an upwardly revised 514,000 the previous week. That's the fewest claims since the week ending Jan. 3, and below economists' estimates.

The news is evidence the job market is slowly healing.

But investors are more concerned by Wal-Mart's lower than expected third-quarter sales, a sign of weak consumer spending.

Dow Jones industrial average futures are down 34, or 0.3 percent, at 10,225. Standard & Poor's 500 index futures are down 4.40, or 0.4 percent, at 1,091.90, while Nasdaq 100 index futures are down 5.50, or 0.3 percent, at 1,778.25.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

Wall Street appeared headed for a lower opening Thursday as Wal-Mart Stores Inc. had disappointing news on consumer spending.

Although the nation's biggest retailer reported third quarter earnings that beat analysts' expectations, it said sales dropped at stores open at least a year — a key indicator of a retailer's strength. Wal-Mart also said that key sales gauge would range from a drop of 1 percent to a gain of 1 percent in its fourth quarter, a disappointing range for investors.

Because of its size, Wal-Mart is seen as a key indicator of consumer spending trends. Investors are concerned about consumers' ability to lift the economy into a strong recovery.

Meanwhile, Kohl's Corp. said higher sales helped third-quarter profit rise 21 percent.

Both Wal-Mart and Kohl's raised their full-year guidance.

The reports come a day after Macy's Inc. reported that its sales improved during the quarter. Nordstrom Inc. and Walt Disney Co. are also due to report results after the market closes Thursday.

Ahead of the opening, Dow Jones industrial average futures fell 51, or 0.5 percent, to 10,208. Standard & Poor's 500 index futures fell 6.00, or 0.6 percent, to 1,090.30, while Nasdaq 100 index futures fell 10.00, or 0.6 percent, to 1,773.75.

Investors were already pausing before the retail earnings reports, having sent stock prices sharply higher over the past week. Record-low interest rates and the resulting slide in the dollar have been major forces behind the recent surge in stocks.

But the euro was up slightly against the dollar Thursday. Gold prices fell, while oil prices also edged lower.

The market was also waiting for the Labor Department's weekly report on first-time claims for unemployment benefits, an indicator of how the job market is faring. The report, due out at 8:30 a.m. EST, is projected to show new unemployment insurance claims dropped by 2,000 to a seasonally adjusted 510,000 last week, according to economists surveyed by Thomson Reuters. That would be the lowest total since early January.

Markets overseas were mostly lower. Japan's benchmark Nikkei stock average fell 0.7 percent. In afternoon trading, Britain's FTSE 100 was flat, Germany's DAX index slipped 0.1 percent and France's CAC-40 fell 0.2 percent.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.46 percent from 3.48 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.07 percent from 0.06 percent late Tuesday. Bond markets were closed Wednesday for Veterans Day.

Minnesota's jobless benefits extended

unemployment insurance benefits

Minnesota unemployment insurance benefits have been extended by up to 14 weeks, state officials announced Thursday, giving a much-needed lifeline to thousands who were out of jobs.

About 10,000 Minnesotans will be immediately affected by the federal extension.

The change, which comes as a result of legislation signed into law Nov. 6, means unemployed Minnesotans will be eligible for up to 86 weeks of benefits when combined with past extensions.

"These benefits are a welcome relief for workers who need additional time to find jobs. Many Minnesota families will be helped by this," said Dan McElroy, commissioner of the Department of Employment and Economic Development.

State unemployment typically last up to 26 weeks. However, the federal Emergency Unemployment Compensation Program now offers up to 47 additional weeks of benefits, including the new 14-week extension. Another 13 weeks of federal-state benefits are available to Minnesotans who have exhausted regular and emergency unemployment.

The state's maximum weekly benefit is $585.

About 175,000 Minnesota workers apply for unemployment benefits each week.

Georgia unemployment claims drop slightly in October

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The number of Georgians filing first-time claims for unemployment insurance benefits dropped in October to 70,597, the Georgia Department of Labor said Thursday.

The number is a 2.8 percent decrease over first-time unemployment insurance filings in October 2008, which was 72,627, the state labor department said.

In Atlanta, however, the number of first-time filings jumped nearly 11 percent to 32,225 in October over the same time a year ago, when the number was 29,057, the DOL said.

The average length of time that jobless Georgians drew benefits also increased to 14.4 weeks in October from 11.6 weeks the same time a year ago.

In addition, the number of initial filings went up 6 percent statewide between September and October, DOL figures show. The number of initial unemployment insurance benefit claims in September was 66,614.

State Labor Commissioner Michael Thurmond said the numbers are a "revealing snapshot" of Georgia's job market and show "nascent economic recovery."

Thurmond said he considers the only small drop in initial unemployment claims to be the "most striking."

"This is a stark reminder that job losses are continuing at rates comparable to those experienced at the height of the Great Recession," Thurmond said Thursday.

The number of jobless workers in Georgia receiving unemployment insurance benefits overall rose 32.8 percent to 130,812 in October 2009 from 98,530 a year ago, according to figures from the state DOL.

An additional 146,000 workers are receiving federally funded extended unemployment benefits as well, the labor department said.

Most of the initial out-of-work claims were filed by workers in manufacturing, wholesale and retail trade, construction and administrative and support services.

Metro area sees large drop in unemployment insurance benefit claims

unemployment insurance benefits

The metro Dalton area (Whitfield and Murray counties) saw a 41.5 percent drop in the number of initial claims for state unemployment insurance benefits in October compared to October 2008, according to figures from the state Department of Labor. That was the largest decline among the state’s 14 metro areas.

The number of claims in Metro Dalton dropped from 4,273 in October 2008 to 2,499 in October 2009.

The DOL said 70,597 laid-off workers in the state filed initial claims for state unemployment insurance benefits in October, a decrease of 2.8 percent from October of 2008. The number of claimants increased by 3,983, or 6 percent, from September when 66,614 claims were filed.

The average length of time jobless workers drew benefits increased from 11.6 weeks in October of 2008 to 14.4 weeks in October of 2009.

“The October jobless claims report provides a revealing snapshot of the condition of Georgia’s job market and viability of the nascent economic recovery,” said State Labor Commissioner Michael Thurmond in a press release. “Most striking is the lack of improvement in initial claims, which showed a decline of only 2.8 percent over the year. This is a stark reminder that job losses are continuing at rates comparable to those experienced at the height of the Great Recession.”

Thurmond encourages employers and job seekers to take advantage of the opportunities available through expanded use of the Georgia Work$ (GW$) initiative. It seeks to significantly reduce employer costs associated with recruiting, training and hiring new employees. For more information about the GW$ hiring strategy, visit www.dol.state.ga.us or e-mail inquiries to gaworks@dol.state.ga.us. GW$ telephone operators are available at 1-877-WORKS09 (1-877-967-5709).

Georgia labor market data are available at www.dol.state.ga.us.

Be ready for the worst: What to do when laid off

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CHICAGO — The shock of being laid off barely had time to set in before Jim Wessel began looking for another job.

Released as purchasing director for a resort one Friday this fall, Wessel started phoning business contacts from his car on the way home. He tweaked his resume over the weekend, signed up for job-related Web sites and reconnected with old friends who happened to be recruiters.

The loss of a job can leave you disoriented, wondering what to do first. With unemployment topping 10 percent last month and more than 15 million other Americans looking for work, it's essential to quickly address not only job options but other money-related issues.

"The important thing is to get yourself organized," says Deborah Russell, director of work force issues for AARP.

Though Wessel, of Belle Vernon, Pa., took immediate action, having a plan hasn't paid off in another job yet. But the 31-year-old has a few promising leads and knows it was important to move fast.

"If I can acquire a job with only being unemployed for three months in this market, I'll consider it a success," he says.

Here are important things to do if you get a pink slip:

1. TAP YOUR (EX-) EMPLOYER FOR ASSISTANCE.

Getting laid off can be so stunning that the tendency is to walk away and say you'll figure things out on your own. But many companies offer help beyond the basic severance package, such as access to legal counsel or clients and outplacement resources.

Human resources departments sometimes even will negotiate the terms, such as payouts for vacation time, or work with you on legitimate ways to extend your benefits, according to Heather Hammitt of the Illinois State Council of the Society of Human Resource Management.

For example, if you're dismissed toward the end of the month, you might be allowed to stay on the payroll until the beginning of the next one so you're covered under the group insurance plan for another month.

"Most organizations know that downsizing isn't the greatest public relations move," says Hammitt, who also is head of human resources at a bank in Ottawa, Ill. "So they know that if they help their (laid-off) employees, word will get out in the community."

2. REGISTER FOR UNEMPLOYMENT BENEFITS.

Even if you don't expect to be out of work for long, file for unemployment insurance benefits promptly. The sooner you do so, the sooner you'll have that extra check to slow the drain on your savings.

To find your local unemployment insurance agency, call the U.S. Labor Department at (877) US2-JOBS or visit the following link: http://www.servicelocator.org/OWSLinks.asp.

In order to qualify, you must have been laid off, not fired, and have worked for a stipulated minimum amount of time — typically a year and a half. Once you've registered, you must show you're looking for work in order to receive your weekly benefit.

3. SECURE YOUR HEALTH INSURANCE.

Don't scrimp by forgoing health insurance. The biggest error made by laid-off workers is giving up the coverage known as COBRA, according to Jim Pogue, senior vice president of group benefits for Guardian Life Insurance Co. of America.

"Saving by not paying for your COBRA or keeping health care for your family," Pogue says, "can ultimately lead you into financial ruin."

The federal law COBRA — the Consolidated Omnibus Budget Reconciliation Act — allows most people to stay on their former employer's health plan should this be 'employers' health plans'? for 18 months after they are let go. You will pay more for insurance than you did when you worked, since the company covered most of the premium, but you're likely to pay less than you would for insurance you buy on your own.

More information on COBRA coverage is available at a U.S. Department of Labor link: http://www.dol.gov/ebsa/faqs/faq(underscore)consumer(underscore)cobra.html.

Compare COBRA costs with those of getting coverage through your spouse's plan, if that is available.

Also decide whether to maintain dental, life and disability insurance or go without until you find another job; ask your ex-employer about those benefits.

4. GET CAREER OPTIONS IN ORDER.

Revise your resume, make a list of people you want to contact for job advice and do homework on your labor market. Go to your local employment agency, and also find a career center that can tell you about training and job opportunities nearby. Seek out a career counselor at your community college or elsewhere to help organize your next steps.

Useful Web sites with job information and advice include CareerBuilder.com, Monster.com and the Labor Department's job opportunities page at http://www.dol.gov/dol/jobs.htm. AARP also discusses job tips and openings for people age 50 and over on its Web site at http://www.aarp.org as well as offering a help guide for any laid-off worker.

Stay active in your field. Keep going to professional society conferences, take advantage of seminars and conferences, offer to do pro bono work for local civic groups. Besides providing networking opportunities, it helps avoid gaps in your resume.

5. REVIEW HOUSEHOLD EXPENSES.

Take a close look at all your bills and optional expenses, analyze where you spend your money and come up with a plan to spend less.

Consider cutting any expensive or unnecessary costs such as gym memberships, movies-by-mail, extra phone services like call waiting, maybe even your landline.

6. SEEK UNEMPLOYMENT DISCOUNTS.

Many companies offer discounts to those who have been laid off. Do some research and take advantage of those offers.

If you don't know, don't be afraid to ask a store or business: "I've just been laid off. Are you offering any recession specials?"

Your landlord, student loan provider and bank or credit card agency might also give you a temporary break on your payment schedule.

There was a time when saying you were laid off or unemployed raised a red flag with not only prospective employers but the community at large. With unemployment at 10 percent, however, "that stigma doesn't exist any more," Hammitt notes.

Aid for homeowners and jobless on the way

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As news that the national unemployment rate has climbed to more than 10 percent, the highest since 1983, further cements the reality of a hard-hitting recession, help from the Obama administration and Fannie Mae is on the way to assist jobless Americans, struggling businesses and homeowners facing foreclosure.

A stimulus measure recently approved by Congress would extend unemployment benefits for many to a total of two years and raise the maximum for state and federal compensation to 99 weeks.

It would give up to an additional 14 weeks of coverage to those who can no longer claim benefits. Payments given under the extension will begin on the week ending Nov. 15. They will not be made retroactive, so those whose benefits run out prior to the week ending Nov. 8 will not be eligible.

The legislation would also give 20 more weeks of coverage to people who are living in the approximately 26 states where the unemployment rate has exceeded 8.5 percent, including New York.

“It will certainly generate money throughout the economy and create more jobs just by virtue of the fact that those additional monies will be spent,” said Jeff Weissenstein, one of the State Department of Labor’s analysts for New York City. “Naturally, any additional income for individuals who are out of work is welcome.”

The national unemployment rate rose from 9.8 to 10.2 percent in October, raising the total number of unemployed persons by 558,000 to 15.7 million. More than 35 percent of the unemployed were jobless for 27 weeks or more, according to the U.S. Bureau of Labor Statistics.

For September, the latest month for which the state has released data, the Queens jobless rate was 9.1 percent, compared to 5.2 percent in September 2008. In New York City, it climbed from 6 percent to 10.3 percent in the same period, and in New York State, it rose from 5.8 percent to 8.9 percent.

The new federal bill would also help people who are buying a home for the first time by extending an $8,000 tax credit, which was set to expire on Nov. 30, and allowing those who sign a contract before May 1 on a home priced up to $800,000 to be eligible.

“It has helped us in the past and it will continue to help us in the future,” said Kenny Sattaur, a real estate agent with RE/MAX in Rosedale, who says 95 percent of his clients are first-time homeowners. “It has played a large role in the amount of homes that we have been able to sell. First-time homeowners are scared, and they use this money as a security blanket.”

In addition, a $6,500 credit will be available to homeowners who have lived at the same residence for at least five of the last eight years in order to assist them in purchasing a new dwelling.

Those attempts to further stimulate the housing market will also raise the minimum income applicants can earn in order to qualify— from $75,000 to $125,000 for individuals and $150,000 to $225,000 for couples.

“It’s definitely a step in the right direction,” said Lynn Nunes, the owner of Five Star Realty in Richmond Hill. “It won’t be the silver bullet that will solve all the housing woes but it’s better to have it than not to have it. It encourages people to purchase property now rather than later and to take advantage of the incentives being offered.”

Nunes says only some of his clients are aware of the stimulus measure, but he encourages those who are on the fence about buying a home to consider taking advantage of the offer, especially since interest rates are at a historic low. “If your finances are in order and you want to buy a home, now is the ideal time,” Nunes said.

For the third quarter of 2009 home sales in Queens climbed 31 percent compared to the second quarter, which demonstrates an increase in real estate confidence, according to Prudential Douglas Elliman, the city’s largest real state firm, which compiles the quarterly market reports.

Struggling businesses will also get some relief through the measure. It can assist them in getting tax refunds by allowing them to deduct losses for 2008 and 2009 from the last five years in which they have made a profit. Previously, they could only deduct losses from the last two profitable years.

Fannie Mae, meanwhile, has created a new program called Deed For Lease allowing homeowners who are in danger of being evicted to surrender the deed to their home in exchange for a lease agreement, which would allow them to rent the residence for one year at a local marketable rate with the possibility of renewals on a month-to-month bases after that period.

“It’s a phenomenal idea,” said Nunes. “It gives people the opportunity to get their life back in order and have some stability. It also prevents us from having property that is in disrepair or goes uninhabited for years. They should have come up with it a long time ago.”

The goal of the program is to reduce the displacement families experience when their property is seized by a lender. The occupants still lose ownership of the house but unlike a typical foreclosure they can reside within the residence during the transitional period. Another benefit is the reduction in cost, since the rental payment is usually far less than the mortgage payment in most cases.

“The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications,” Jay Ryan, vice president of Fannie Mae, said in a statement. “This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.”

To be eligible for the program, the homeowner’s mortgage has to have been guaranteed by Fannie Mae and the home must be the primary residence. In addition, the applicant must be unable to qualify for other assistance such as the loan modification program created by the Obama administration.

Man charged with stealing unemployment benefits

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WATERVIET -- A 39-year-old city man was arrested for allegedly collecting more than $9,000 in unemployment benefits while he had a job.

State Police and the state Department of Labor investigated Francisco Alecia and found he collected benefits from Oct. 15, 2007, through May 14, 2008, and again from April 27 through May 10, 2009, when he was allegedly employed at Prime Flight Aviation Services Inc in Albany and Bradco Supply Corp.

State Police said Alecia allegedly received a total of $9,238.75 in unemployment benefits he was not entitled to.

Alecia was charged Monday with third-degree grand larceny, first-degree falsifying business records and offering a false instrument for filing.

He is scheduled to appear in Watervliet City Court on Nov. 19.

L.I.C. pantry faces soaring demands

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Rising unemployment and underemployment have forced many residents of Long Island City to seek food assistance. Food pantries, which provide free groceries to those in need, are trying to keep up with the rising demand but feel overwhelmed by the number of new clients.

The city’s unemployment rate stood at 10.3 percent in September, compared to 6 percent in September 2008.

Christy Robb, who runs Hour Children’s Food Pantry at 36-49 11th St., says the numbers have jumped by more than a third.

“We’re getting literally about 30 to 40 new people every week,” Robb said. “I mean, I’m getting a little freaked out because it’s hard for me to know how I’m going to keep up.”

The pantry, which is open two days a week, had been planning on having a third day for seniors, but the idea has been put on hold for fear of not having enough supplies to meet the demand. Between 2 and 4:30 p.m. on a recent November afternoon, the pantry had already served 115 individuals.

Facilities such as Hour Children’s Food Pantry distribute mostly canned foods, rice, pasta, frozen vegetables and juices. Robb’s pantry is a “client choice” pantry where people can choose one or two items per food group and usually leave with a bag of nine to 10 items. Other pantries often distribute prepackaged bags.

Hour Children’s Food Pantry receives support through the city’s Human Resources Administration, the New York State Department of Health via United Way and the federally funded Emergency Food and Shelter Program, among others.

Pantries apply for grants and then file records online once a month. Donor agencies can access the records and determine how much funding to allocate to the applicant depending on its size.

But Robb says obtaining funding to meet the demand is a “rollercoaster and very, very stressful.” She has already had to cut services by limiting households to three visits per month — down from four.

While she says it is still possible to find funding for supplies, it’s hard to come up with the money to hire staff. The pantry relies on volunteers and only has one paid employee, who makes $8 an hour.

Many of those who visit her pantry would be happy to make that kind of money full-time. Robb, who has more than 20 years experience in social work, says she has never seen so many part-time workers turning to pantries for help.

Katrina Walters is one of them. The single mother of three lost her full-time job as an after-school program coordinator for the Supportive Children’s Advocacy Network last year. She visits the pantry once a week to supplement the items she buys with food stamps.

“Right now with the way the economy is going and the job situation, it kind of supplements what I already have and what I can get, like pasta and sauces,” she said. “It’s a really big help. A really big help.”

Walters works part-time whenever she can find employment. She was hired at a beauty supply shop for Halloween but is unsure of what employment she will have in the future.

“With my experience I’ve been able to find jobs, customer service, data entry, like no problem, but the last, honestly, 12 months, it’s been rough,” she said. “It’s really been rough.”

Walters’ case is far from unique. According to the Center on Budget and Policy Priorities, a liberal-leaning think tank, in 2007 more than twice as many households on the Supplemental Nutrition Assistance Program, or food stamps, worked as relied solely on welfare benefits. For every additional dollar food stamp recipients earn, their benefits only decline by 24 to 36 cents, which serves as an incentive for people to work.

SNAP is a federal assistance program available to people and families with little or no income. This year, through the American Recovery and Reinvestment Act, the Obama administration and Congress increased benefit allotments, and Walters says the extra money has helped.

“Ever since Obama has been in office they’ve been giving like more, every month, more, a few bucks here and there but it works,” she said. “I’ve been finding that I’ve been okay. I’ve been able to utilize it.”

The Food Research and Action Center, a nonprofit organization which works on hunger in the United States, says that, in fiscal year 2008, there were on average almost 2 million individuals in New York State participating in SNAP on a monthly basis. That number represents an increase of nearly 36 percent over five years. The average monthly benefit per person was $109.78.

Robb of Hour Children says pantries do more than just hand out food. Her group, for instance, offers free legal representation, specializing in public assistance, food stamps and rent arrears.

She processes a truck driver who says he recently lost his job and health insurance with it. She gets him to fill out paperwork and informs him of what other services he might benefit from.

“It’s actually the first point that many people enter into a social service agency, so it’s actually crucial in engaging them and getting some trust going,” she said.

Ellen Vollinger, the legal and food stamp director at FRAC, says “food pantries play important roles not only in providing families with bags of food … but in connecting them with SNAP/Food Stamps that can provide them with many meals for sustained periods of time.”

But Robb fears she may have to stop accepting new members in the future.

“I’m not sure what we’re going to do,” she said. “I can’t just continue to support that many new people in addition to everyone that’s already coming in here, and so that’s got me kind of worried.”

LightSource Poll by KJT Group Shows Divide in Americans' Health Care and Beliefs

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HONEOYE FALLS, N.Y., Nov. 12 /PRNewswire-USNewswire/ -- Fresh off the House of Representatives' landmark vote this past Saturday, the new LightSource poll, conducted by KJT Group, reaffirms that Americans are not on the same page when it comes to our nation's heath care, health insurance and the government's role in both. This wave of the LightSource was a national poll of 962 general population respondents across the United States. Sampling was provided by OTX Research.

The results show that Health Care Reform is the nation's second most important issue facing the United States in total (21.5% rated as most important), behind Unemployment (31.2% rated as most important). The greatest proportion of Democrats (33.0%), Republicans (24.1%) and Independents (36.6%) all rated Unemployment as the most important issue. Health Care reform was the runner up, however, with 28.6% of Democrats, 17.1% of Republicans and 17.0% of Independents rating it as the most important issue. The National Debt was ranked as most important by a greater proportion of Republicans (20.2%) as compared with Democrats (10.4%) and Independents (16.2%).

As policy makers try to build consensus about the ways and means needed to improve the health care system, an important issue is the question as to whether health insurance and health care services delivery should be viewed as two distinct components of that system. A full 43.2% of respondents agreed that insurance and delivery of care should be considered two, separate systems, whereas 25.2% disagreed with the same premise. Other important beliefs about the health care system are illustrated in Table 1.

Statements about the Percent Agreeing with Statements
Health Care System (Somewhat or Completely Agree)

Health insurance and the delivery Total Democrat Republican Independent
of health services should be
considered two, separate systems. 43.2 40.8 47.5 46.0

Health insurance should mainly be
used to pay for major, expensive
health events. 29.3 27.1 35.4 28.5

Health care is a right, and should
be provided to all citizens
regardless of ability to pay or
their behavior. 55.6 70.2 37.0 57.9

I have very little control over
the amount of money I will need
to spend on health care. 54.4 59.2 48.2 56.6


"The LightSource Poll provides strong evidence of continued disparity across political party affiliation as it relates to important aspects of how we view our Health Care System in America today. It is clear that Americans are not on the same page, even among same party affiliation, as to the role of insurance as one example," said Kenneth Tomaszewski, Light Source Director, and President of the KJT Group.

Dr. Theodore Brown, Professor in the Department of History and Professor in Division of Health Services Research, Community & Preventive Medicine at the University of Rochester said that he was most struck by two things: how many Americans feel they have little control over the amount of money they spend on health care, and how many believe that health care should be a basic right. "In fact," he said, "I find it very telling that 37% of the Republican respondents agree with 70% of the Democrats on this issue. I think this is an important finding, and I hope Washington takes notice."

This wave of the LightSource poll was conducted among 962 adults (18 years or older) between October 28 and November 10, 2009. This was a non-probability, stratified sample, collected via web-based interviews. As such margin of error cannot be accurately estimated. In addition to the results shown here, an oversample of 600 New York State residents was collected and is published separately. For more information such as a detailed methodology, or additional results from this wave of the LightSource, go to www.kjtgroup.com/press.html.

About LightSource: The LightSource poll is a nationally representative, online public-opinion poll conducted quarterly. The LightSource focuses on three primary topics: the economy, the health care system, and care giving trends. The LightSource employs stratified sampling, focusing on key factors such as age, gender, household income and U.S. geographic region to help ensure national representation.

About KJT Group: KJT Group is an innovative consulting and research company that provides data and insights into the evolving health care marketplace. KJT Group is a member of the National Public Polling Commission (NPPC), Council of American Survey Research Organizations (CASRO), Academy Health, and the International Society for Pharmoeconomics and Outcomes Research (ISPOR).

About OTX Research: OTX (www.otxresearch.com) is a global research and consulting firm (18th largest U.S.) specializing a suite of multi-media research products to the marketing, entertainment and advertising communities. Its opt-in samples are obtained and managed through a number of sources to ensure a representative global population for online research.

Why will the unemployment extension payments take so long to receive in Michigan?

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The recent extension of unemployment benefit payments has come as a huge relief to as many as 80,000 Michigan residents whose benefits have already expired. But many are also asking: Why the big delay in receiving extension payments?

The state Unemployment Insurance Agency doesn't expect to start sending out checks until mid-December, although the payments will be made retroactive to Nov. 8.

"The agency anticipates making payments as quickly as possible and will post information on its website (www.michigan.gov/uia) once it has a firm starting date for issuing the benefit payments," agency spokesman Norm Isotalo said via e-mail.

"There are, however, changes that must be made to the agency’s computer payment system. Before these changes can go into production, they must be thoroughly tested to ensure accurate benefit payments. In fact, staff is now in the process of developing and testing these changes."

Other factors adding to the delay, Isotalo said, include receiving final instructions for implementing the extension from the federal government and preparing protocols for state unemployment staff. Workers must also develop accounts, coding and other measures to ensure accurate record-keeping, he said.

Lastly, unemployment payments can't be made any earlier than the third week following the Emergency Unemployment Compensation effective date of Nov. 8. Unemployed workers must certify through the state's MARVIN system that they were unemployed and meet eligibility requirements forthe prior two weeks.

The estimated 70,000-80,000 residents who have exhausted their benefits should receive written instructions by Nov. 24 on how to certify for the new extensions, Isotalo said.

State reverses decision to grant unemployment benefits to former Ada Township clerk

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ADA TOWNSHIP -- The state has reversed a decision to grant unemployment benefits to a former township clerk voted out of office.

Deborah Ensing Millhuff, a full-time clerk since 1997, lost her bid for re-election last year to Susan Burton.

Millhuff was denied unemployment benefits in December. She appealed that decision and on Oct. 13 was granted benefits of $362 a week for up to 26 weeks by the state Unemployment Insurance Commission.

But in a letter dated Nov. 5, the state cited "a clarification" of section 43 of the Employment Security Act, which states that the term "employment" does not apply to elected officials.

Millhuff could not immediately be reached Tuesday for comment.

Supervisor George Haga said the township is pleased with the state's latest decision.

Unlike private employers, which pay into a broad unemployment insurance fund that is tapped when employees lose their jobs, government agencies must fully reimburse the state for unemployment and the federal government when benefits are extended.

An attorney advising the township had said that if the state's ruling held, it could set a precedent for other local governments.

In its original determination letter on Oct. 13, the state held that 65 percent of Millhuff's job involved "nonstatutory duties" that it ruled should be applied toward unemployment benefits. Millhuff said those duties included writing the township newsletter, serving as chairwoman of the parks committee and personnel oversight.

State unemployment deficit forecast skyrockets to nearly $3 billion

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With jobless claims remaining high in the state, Wisconsin’s unemployment fund faces a projected deficit of nearly $2.8 billion by the end of 2011 -- more than twice the amount forecast earlier this year.

The projection delivered to lawmakers Tuesday means more state borrowing from the federal government to keep making payments to workers and possible higher taxes for employers and lower benefits for the unemployed to help the state pay the debt off.

One change being pushed by the state’s business lobby to help bridge the shortfall would be to force laid-off workers to forgo their first week of unemployment claims. That promises a big fight on the advisory council that helps set the state’s unemployment insurance policies.

“My position is actually no way. When somebody’s out of work they’re hurting more than any other time,” responded Dennis Penkalski, a labor representative on the advisory council. “It’s almost like a sacred cow.”

The latest figures on the state’s unemployment reserve fund were revealed in a briefing Tuesday to the Assembly Committee on Labor by Hal Bergan, administrator of the state labor department’s Division of Unemployment Insurance. The unemployment fund, which makes payments averaging $290 a week to jobless workers, is funded through taxes on employer payrolls.

With Wisconsin’s unemployment rate at 8.3 percent, the state has already had to borrow $734 million from the federal government to be able to meet federal requirements to pay jobless claims, joining some two dozen other states that have also been forced to borrow, Bergan said.

Through the end of 2010, the federal stimulus law is forgiving the state’s interest on that debt, Bergan said. But, absent action by Congress, starting in 2011 the state would owe about 5 percent yearly interest on more than $2 billion in projected debt — or more than $100 million in yearly interest payments alone.

Plus, if nothing is done quickly to pay off the loans, the federal government will also start taxing all Wisconsin employers until that debt is repaid, with a projected $51 million in new taxes imposed on businesses in 2012 and $102 million in 2013.

Those figures account for a state unemployment tax increase on employers that has already been passed and is being phased from this year through 2013, Bergan said.

To restore the fund to solvency, a combination of cuts to worker benefits and tax increases on employers worth between $200 million and $250 million a year will likely have to be made, said Jim Buchen, a vice president and lobbyist at Wisconsin Manufacturers & Commerce who sits on the state’s Unemployment Insurance Advisory Council.

The council, evenly split between business and labor, is seeking to make recommendations on how to close the unemployment fund shortfall so the Legislature could take up a bill to make those changes in the spring, Bergan and Buchen said.

Buchen said making workers pass up their first week of claiming unemployment benefits would save the state about $80 million a year.

Under that approach a worker could still collect their 26 weeks of standard state unemployment benefits, but only if they’re out of work for at least 27 weeks. A worker who was only out of work for one week would get nothing.

Doing nothing is a bad option because it will lead to federal taxes being imposed on all employers, even those companies that haven’t laid off workers, Buchen said. State taxes, on the other hand, are higher on employers with a history of lay-offs.

“We have to be realistic,” Buchen told lawmakers. “There are circumstances where we’re paying benefits where people don’t absolutely need them.”

Bergan said about 36 states have some waiting period before workers can collect benefits.

Penkalski said the state should have increased taxes on the fund sooner. Before the increases currently being phased in, the fund hadn’t benefited from a significant tax hike since the 1980s, in spite of the fact its reserves have been dwindling since the 2001 recession.

Penkalski said the state should increase the amount of employee wages that are subject to the payroll tax on employers. That amount is currently the first $12,000 of each worker’s pay and is scheduled to rise to $14,000 by 2013.

Letters tell unemployed of extended benefits

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Letters notifying more than 16,000 Utahns that they may be eligible for an additional 14 weeks of emergency unemployment compensation were mailed out Monday by the Utah Department of Workforce Services.

The additional compensation became available Friday when President Obama signed legislation that extended the benefit at a time when the national unemployment rate climbed to 10.2 percent, the highest in a quarter century.

Curt Stewart, spokesman for the state agency that administers the unemployment insurance program in Utah, said this latest extension of federal benefits means that unemployed workers are eligible for a total of 73 weeks of compensation: the original 26 weeks of regular state unemployment benefits and, now, 47 weeks of extra federal aid.

Unemployment Insurance Director Bill Starks says people who receive the letters should file for the extended benefits at jobs.utah.gov.

Claims also may be made by telephone to one of four state unemployment insurance centers: 801-526-4400 in Salt Lake and south Davis counties; 801-612-0877 in Weber and north Davis counties; 801-375-4067 in Utah County; and 888-848-0688 for other parts of Utah and from out-of-state.

Extension of unemployment benefits, home buyer tax credit may do more harm than good

unemployment insurance benefits

Where’s the line between a helping hand and a crutch?

Last week, Congress approved a measure to extend unemployment benefits to 99 weeks and expand the home buyer’s tax credit first adopted in early 2008. The ministimulus plan includes two needy targets — the unemployed and the housing industry — but it’s hard to think of the help as temporary.

Ninety-nine weeks on the dole is about a month shy of two years, and that sounds like an eternity for workers in the United States. It’s almost four times longer than usual and 50 percent longer than any previous period.

Even in Texas, where drawing unemployment can be difficult, some residents are now eligible for 93 weeks of aid.

The extra six weeks’ aid goes to the 26 other states whose unemployment rate is at least 8.5 percent.

It’s understandable that lawmakers want to help.

Unemployment is the highest since 1983, and more than 1 in 3 jobless people have been looking for work for six months or longer, the most ever recorded in this country.

That helps explain why the Senate passed the bill by a vote of 98-0. The House approved it 403-12. And President Barack Obama signed the bill on Friday, the same day the government announced that national unemployment had reached 10.2 percent.

The question is whether the gestures will have unintended consequences. In softening today’s economic hit, will they extend the downturn, slow the recovery or lock politicians into an expensive precedent?

Research shows that job hunters work much harder when their benefits are about to expire. One study found that unemployed workers put in 70 minutes a day on job searches during their last week of benefits compared with 20 minutes a few months earlier.

It’s no surprise that the sense of urgency grows as the day of reckoning approaches.

Stakes are even higher today because so many jobs are gone for good. That means many people have to reinvent their careers, sometimes get training and reset their family finances.

In this economy, the old standard benefit — six months of unemployment insurance — isn’t enough. So the feds added 20 weeks of additional benefits in the summer, along with 13 extra weeks for states with "high unemployment."

In February, as part of the stimulus, 20 more weeks were added, raising the maximum to 79 weeks. And after Friday, states added 14 to 20 weeks.

With unemployment insurance, policymakers try to strike the right balance between helping people get through a rough patch and being fiscally responsible. They also don’t want to create a welfare mentality, which has hamstrung some countries in Europe, where aid can be unlimited.

There is plenty of incentive to get back to work in the United States, even beyond the emotional rewards of being productive. In general, unemployment insurance replaces only about half of previous income, up to a maximum of about $400 a week. Most people lose their health insurance with their job, and they have to pay for a COBRA plan to remain covered. That’s an expensive proposition that eats up much of the monthly benefit.

As part of the stimulus in February, the government subsidized COBRA payments for up to nine months. And in testimony in a Senate hearing, one expert said Congress should carefully weigh the trade-off in ending that support and extending unemployment insurance again.

While many workers let their health coverage lapse, others depend on it to treat their family’s medical conditions.

"For these workers, access to basic health insurance may be much more important than eligibility for a few extra weeks of unemployment benefits," said Gary Burtless, an economist at the Brookings Institution.

He also said Congress’ extensions are establishing a precedent.

Most of the extra aid is set to expire in January, with one tier approved through May. But people who are laid off in the next few months will expect to have more than 26 weeks of help.

The job market usually remains weak even after economic recovery begins.

Unless we’re sure that we have the funding and political will to continue to provide extended benefits, many will feel they weren’t treated equitably, Burtless said.

And what should home buyers and sellers expect? The bill extends an $8,000 credit for first-time buyers and adds a $6,500 credit for those moving up. Couples who earn up to $225,000 are eligible.

Some economists say the incentive will artificially prop up prices rather than move a lot of excess inventory, because the tax credit has been around since early 2008.

Supporting prices may be part of the goal, but for two years, the housing market has been trying to find a natural, sustainable price level.

It’s been a painful process, and much of the industry finally seems to be near a bottom. In the latest S&P/Case-Shiller Index, 17 of 20 metro areas showed month-to-month gains.

While prices are still lower than last year, home prices in 20 cities rose an average of 1.6 percent from July to August.

The government has been helping real estate in a big way by keeping interest rates low and pushing lenders to let troubled borrowers remain in their homes. With 30-year mortgages at 5 percent and selling prices far off their peaks, it’s an attractive time to buy.

The tax credit adds another element, and analysts say it can be leveraged as a down payment. After the housing bubble, is that a good thing?