(Update: The Senate passed the bill and sent it to the President.)
A bill that would extend jobless benefits for California workers to 59 weeks is on its way to the President after winning Senate approval. The vote comes after new initial unemployment claims soared to a 16-year high nationwide.
Unemployment benefits normally run out after 26 weeks but many 
California workers who had exhausted their benefits became eligible for an additional 13 weeks in July after Congress approved an extension in states with high unemployment. California’s unemployment rate was 7.4 percent in July, among the highest in the nation.
The new federal bill, which was approved by the House of Representatives Wednesday, would provide seven more weeks of benefits in most states.
Workers in states where unemployment tops 6 percent would get an additional 13 weeks of benefits. In California, where unemployment was 7.7 percent as of September, the most recent period available, the new extension would bring maximum benefits to 59 weeks.
President George W. Bush initially opposed the extension when it was combined with other bailout legislation but a spokeswoman said today he would sign a standalone bill.
If it’s approved, it could cause further budgetary strains in California. The state’s unemployment insurance fund, which is paid almost entirely by employers, is paying out $25 million to $27 million a day in benefits, says Loree Levy, spokeswoman for California’s Employment Development Department.
At this rate, the unemployment insurance fund is expected to be in the red by January and be $2.4 billion in the hole by the end of next year. When the state runs out of unemployment insurance funds it can borrow from the federal government but has to pay interest. Levy says the state expects to pay $20.2 million in interest by the end of next September.
Tell us…
For other jobs and economy news …
- O.C. pay raises half the U.S. average
- Meltdown recovery? It’s all about housing
- O.C. jobs loss continues, unemployment hits 5.8%
- More Calif. job losses coming in 4Q
- CSUF predicts a grim ‘09 for O.C.
Yes, of course! However, I think realtors and mortgage brokers/lenders should be exempt from the additional unemployment benefits. They are/were the scum bags that made it rich during the bubble years. Better yet….put them in handcuffs!
ABSOLUTELY YES! … There is one bit of information on the unemployment extensions worth mentioning: they are being approved and funded by our Federal Goverment, not at the state level. I think the above OC Columnist is a bit confused on his assertion that this is going to “further strain California’s budget.” Not to mention the fact that CA used to provide 52 weeks of unemployment insurance and at sometime that changed. We need to remember that this money goes to people who lost their jobs due to no fault of their own. With a CA unemployment rate hovering above 7 percent, this decision becomes a lifeline for people, and is really a “NO BRAINER.”
Yay. More time for me to play golf. Thank you so much for the freebies.
I do agree that benefits should be extended. I have to disagree with FreesFury. You can be fired because - you stole money, you called in sick 4 out of 5 work days for the last year or basically anything and still receive unemployment benefits. The unemployment office may deny you for up to the first 6 weeks but after that you can receive benefits. I don’t think that those who chose to lose their job should get the extension.
Chances are if you have time and money to play golf on the miniscule offerings of unemployment, then you probably don’t really need it in the first place. Quiero_dinero must have a spouse with a good income or access to some slush fund overseas, because the people I’m referring to count on this money to survive. As for littlered: you may want to revisit some of the criteria for CA State Unemployment. You are entitled to absolutely ZERO unemployment benefits if you have been terminated from your job due to dishonesty, theft, or any other form of misconduct. The stipulations for this are fairly clear. Again, we’re talking about businesses, retail stores, banks, etc., that are going under daily, and the subsequent thousands that are losing their jobs because of this.
Chicken Feed for a bunch of lazy people! Peasantry is back!
I wish I could say I was using the money to play golf..I got laid off and no one will hire me..BUMP unemployment give me a Job with INSURANCE and a 401k 30 MINUTES FOR LUNCH and some good office gossip….please help me to get a Life again something organized to do everyday…I am so sick of Interviews and looking at my resume….I need the unemployment so I can pay my mortgage because I refuse to forclose on the only thing I ever wanted..I just want my son to get that IPOD he talks endlessly about..I just want a turkey for Christmas…I just want some decent toliet paper…I just need a JOb
The current unemployment situation is a real tragedy. Yet there is always greedy, unrealistic ignoramuses like this heartless fellow SurfCity above calling people being affected by it “a bunch of lazy people”. He is no other than a misinformed, money worshiping, heartless neocon who advocates the egotistical principles of the worst ruler America has ever had. He better start smelling the coffee and realize that dubbya’s empire has already collapsed and if he cannot deal with such reality, he can then go ahead and take that train to nowhere and never-ever come back while resting assured he will not be missed, not now or ever. Bah, humbug to you, whining scrooge!!!
I have the great pleasure of joining the masses of unemployed people in California. I have 15 years experience and an AA in Electronic Engineering Technology. I was in Field Service for the largest woodworking machinery company in the country. Customers cannot afford to service their machines and many are not even running their machines as they have no customers buying cabinets, shelving or doors. Once the housing took a dump, we knew we were in trouble. The real kick in the nuts is that if you attend or plan to attend school to change industries you will be denied unemployment. What a crock!
You people are pathetic! You have ruined your state by spending money you don’t have and now you want to blame the realtors and the lenders for your problems while you chant “Obama” down the street. LOL Question for you:: Why should Iowa pay for your mistake?? They didn’t over spend and over leverage themselves and vote for people who spend like money is free to have every gov’t policy the people want. Stop stealing from the good and much more intelligent people of the midwest and grow up!! You made your mess, and you are to blame. If you want to save yourselves, tell your gov’t to stop wasting your money and stop pretending that you are all super rich and special when you are not!