Gov. Gregoire signs bill to increase unemployment insurance benefits

For Immediate Release: February 16, 2009

OLYMPIA � Gov. Chris Gregoire today signed House Bill 1906, which will give Washingtonians receiving unemployment insurance an additional $45 a week in benefits, coming at the same time the federal government is increasing benefits by $25 a week.

The governor was joined at the bill signing by Heather Reeber of Puyallup, a single mother of four who was recently laid off from her job with a national clothing retailer. Also joining the governor was Sen. Majority Leader Lisa Brown, D-Spokane, House Speaker Frank Chopp, D-Seattle, Sen. Jeanne Kohl-Welles, D-Seattle and Rep. Steve Conway, D-Tacoma.

The combined impact of the state and federal increases will mean $70 more a week for Washingtonians on unemployment and will mean $480 million circulating through Washington�s economy and into local businesses, the governor said.

�Respected economists calculate that for every dollar of unemployment insurance benefits, another $1.64 is quickly generated in the economy,� Gregoire said.

�When we apply that �multiplier� to the additional state and federal unemployment benefits, the total impact comes to $480 million for our state. We are putting money into the pockets of those struggling during this tough economic period, while benefiting stores and businesses in this state.�

Gregoire proposed an increase in unemployment insurance benefits in her Washington Jobs Now package, which outlines strategies to support and create jobs, and stimulate the economy. Those receiving unemployment insurance will notice the increase beginning in May, and continuing through the end of the year.

�Losing my job so unexpectedly has been very tough,� Reeber said. �Not knowing how I was going to provide for my children is the worst feeling a mother could have. This bill will help me temporarily keep heat in my home and food on the table until I find another job.�

�Providing more cash to workers between jobs to help them pay their bills at the time when they need help the most is one of the best ways we can stimulate our economy in a recession,� said Brown. �It is entirely appropriate � and even necessary � that we use our robust unemployment insurance trust fund to help the record number of middle-class families who are applying for unemployment benefits, and help get our economy flowing again.�

�Putting more dollars into the pockets of unemployed workers will make a huge difference for them and their families,� said Chopp. �For some, this increase could mean the difference between paying their mortgage or losing their home.�

�Today the thousands of families across our state who are unemployed will see some welcome relief. This extra $180 a month will help them not have to choose between heating their homes or paying their rent or mortgage,� said Kohl-Welles, who sponsored the Senate version of the legislation.

�These are unemployed workers struggling to pay the rent, put food on the table and buy shoes for their kids,� said Conway, the bill�s sponsor in the House. �They�re not high-end investors, and they�re not hoarding this money. They�ll take this money to their local grocery store. And they�ll help that grocery store stay in business as this money circulates through our economy.�

Along with an increase in benefits, the legislation expands the program that allows employers to reduce workers� hours by up to 50 percent while workers receive partial unemployment benefits. The goal is to keep people working and help employers retain their skilled work force until times get better.

In addition, the bill expands eligibility requirements for unemployment insurance claimants attending school or training. The bill extends the deadline for participants to enter the program, and expands eligibility beyond dislocated workers to include disabled workers, low-wage earners, military and Washington National Guard members who were honorably discharged within the previous year, and current members of the National Guard.

ESD has nearly doubled its staff to help those recently laid off to file for unemployment insurance. In addition, ESD extended hours during the week and opened centers on Saturdays to help resolve the backlog of unemployment claims. The agency is also focusing on those cases that are normally approved to get checks out to those people as quickly as possible.