WASHINGTON, D.C. - Kansas Labor Secretary Jim Garner joined other state labor department administrators as well as public policy, labor and civil rights representatives Monday in calling on Congress to act expeditiously to renew provisions of the American Recovery and Reinvestment Act related to unemployment. The provisions are set to expire at the end of the year, leaving millions of unemployed Americans without benefits.

“Unfortunately, the job market is not seeing the same signs of recovery that have been evident for the remainder of the economy,” Garner said. “Until we begin to see improvement in the labor market, keeping these critical benefits available to the millions of people without work due to this recession will be imperative.”

Representatives from the Center for American Progress Action Fund, the Half in Ten Campaign and the National Employment Law Project (NELP), as well as state labor leaders from around the country, joined together this morning to highlight the economic stimulus benefits of the ARRA provisions already provided and to call on Congress to renew the provisions before the year’s end. The event was held at the National Press Club in Washington, D.C.

According to a report released at Monday’s event - Keeping a First Line of Defense for the Jobless - one million workers will become ineligible for unemployment benefits in January 2010 unless Congress reauthorizes the ARRA’s unemployment insurance programs by the end of the year. Among the critical benefits provided by the ARRA are:

· Emergency Unemployment Compensation (EUC) – in Kansas, this provision provides up to 47 weeks of additional unemployment benefits once individuals have exhausted their regular unemployment benefits. Since the ARRA extended the original application deadline for EUC from March 31, 2009 to Dec. 31, 2009, Kansas has paid out nearly $225 million in EUC benefits. If the application deadline for the program is not further extended, it is estimated that 82,000 Kansans will be ineligible for one or more tiers of the program.

· $25 Weekly Supplemental Unemployment Benefit – anyone receiving unemployment is entitled to an additional $25 a week, fully funded by the federal government. Since March when the provision was implemented, Kansas has paid out more than $67 million in supplemental weekly benefits. It’s money that helps families purchase an extra bag of groceries or a tank of gas each week, as well as money that’s immediately circulated in the state’s economy.

· Suspension of Federal Tax on Unemployment Benefits – Federal Income Tax liability on the first $2,400 in unemployment benefits is suspended for calendar year 2009.

· COBRA Subsidy for Unemployed Workers – the ARRA created a nine-month subsidy to fund 65 percent of an individual’s COBRA benefits for workers who are “involuntarily unemployed.” According to Families USA, the average worker will see an increase in premiums from $389 a month with the subsidy to $1,111 without it. The cost of the COBRA premium without the subsidy would absorb 83 percent of the average worker’s unemployment check, making it unlikely most unemployed workers would continue the coverage.

· Full Federal Funding for the Extended Benefits Program – the permanent extension program called Extended Benefits (EB) provides 13 to 20 weeks of additional benefits for jobless workers in qualifying states. Typically, states pay 50 percent of the costs for EB while the federal government pays the other 50 percent. Under the ARRA, the federal government provides full funding for EB through 2009. Kansas is currently in an EB period providing an additional 13 weeks of unemployment benefits to eligible individuals. If the full federal funding provision is allowed to expire the state will need to begin covering 50 percent of those costs, taxing an already overburdened state Unemployment Insurance Trust Fund.

Congress is set to adjourn for the remainder on the year on Dec. 18, barring a decision to extend the session. Legislation has been introduced in both the House of Representatives and the Senate that would go a long way toward reauthorizing the key provisions of the ARRA. Representatives at today’s event called for the consolidation of those bills and an expansion to include all the ARRA’s unemployment provisions, followed by immediate action by Congress so that the legislation can reach the President’s desk prior to Dec. 26, when the extension deadlines take effect.

“There really is no time to wait,” Garner said. “The welfare of our states, and of millions of families, is at risk.”

More information about Monday’s event and a copy of the Keeping a First Line of Defense for the Jobless report can be found at www.nelp.org.