Liz Rodriguez, a former civil filing clerk from ManhattanâÂÂs Lower East Side, has been unemployed since June 18, 2009. After losing her job, she received two weeks of severance pay and then weekly unemployment checks. However, since May 28, her unemployment checks have stopped arriving.
New York StateâÂÂs unemployment insurance fund is in deficit, meaning that if no action is taken, over the next eight years, New York employees will be forced to pay billions in interest penalties through taxes.
Governor Paterson is introducing a legislation and if approved, it will reform the unemployment benefits system by giving unemployment insurance claimants a minimum of $70 extra a week. It also establishes a $75 minimum for weekly checks.
Since her unemployment checks stopped coming, âÂÂmy lifestyle has changed big time,â said Rodriguez.
According to a press release from the GovernorâÂÂs office, âÂÂThe New York State Department of Labor estimates that the GovernorâÂÂs proposal would bring the UI (unemployment insurance) fund out of deficit in 2015… and save nearly $3.3 billion in additional taxes. It would also save $634 million in UI loan interest that would otherwise be paid by the stateâÂÂs employers.âÂÂ
As for Governor PatersonâÂÂs proposal to reform the unemployment benefits system, âÂÂitâÂÂs a good thing, since jobs arenâÂÂt so available right now, and the only options are more jobs or the extension,â Rodriguez said. âÂÂIt would help me out, because the bills would pay up.âÂÂ
Like Rodriguez, many other unemployed people in New York City feel that reforming the unemployment benefits system is a step in the right direction.
Since the start of the recession, job opportunities are limited and it takes people longer to find jobs. âÂÂIn the past two years I have seen an increase in people who come to our center, mainly because of the increase in unemployment and the clients are looking for work,â Joan Staunton, the director of the workforce development center at Henry Street Settlement, said. âÂÂA year ago it would take one or two months to find a job for someone and now it might take up to three or four months.âÂÂ
Bessie Colon was laid off as a director at Phoenix House, a program that offered counseling and treatment to mentally ill patients and substance abusers, on June 30, 2010. The program was de-funded due to budget cuts.
Like Paterson, Colon feels that this reform is necessary, âÂÂThey need to make changes and help people who need to collect,â said Colon.