Governor's proposed legislation could bring aid to people, the economy.

Liz Rodriguez, a former civil filing clerk from Manhattan’s 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 State’s 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.

 

On June 29, Governor Paterson announced a proposed legislation to reform the unemployment benefits system. This legislation could make it easier for those who are unemployed by providing financial stability to those who don’t have a source of income.  The bill would increase the benefits given to the unemployed and save employers tax money.

 

Since her unemployment checks stopped coming, “my lifestyle has changed big time,” said Rodriguez.

According to a press release from the Governor’s office, “The New York State Department of Labor estimates that the Governor’s proposal would bring the UI (unemployment insurance) fund out of deficit in 2015, three years earlier than projected under current law, 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 state’s employers.” In other words, this legislation would ensure that the UI fund pay for all benefits from unemployment because of family reasons so they won’t be unfairly passed on to employers who are not responsible.

As for Governor Paterson’s proposal to reform the unemployment benefits system, “it’s a good thing, since jobs aren’t so available right now, and the only options are more jobs or the extension,” Rodriguez said.  â€œIt would help me out, because the bills would paid up.”

 

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. “In 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,” Joan Staunton, the director of the workforce development center at Henry Street Settlement, a program that provides job assistance to unemployed people, said. She says that because so many people are getting laid off and there are fewer job opportunities, “a 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.”

 

According to a press release from Paterson, “These people did not willingly leave their jobs; their jobs left them. And more than two years into this terrible recession, neither government remedies nor the free market have succeeded in bringing those jobs back.” The chances of finding a job are scarce. However Paterson’s legislation can help fix this problem by offering an increase in unemployment benefits for those who are unemployed and/or cannot find work.

 

Bessie Colon was laid off as a director at Phoenix House since June 30, 2010, 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 also feels that extending benefits would be a helpful thing because, “if people have some type of income, they can spend money and this will help the economy, where as if the benefits are not extended they wouldn’t have money to spend.” According to Governor Paterson’s press release about the reform, the established minimum that an individual could receive is $75, which is extremely helpful for someone who doesn’t even have a $1 in his or her pocket. Prior to governor Paterson’s proposed legislation, on July 26, 2010, congress and President Obama passed and signed the unemployment extension. This legislation was approved by congress and now the eligibility for benefits has been extended. This will help out those that are currently unemployed because it will be providing them with financial stability.

 

 

Like Paterson, Colon feels that this reform is necessary, “They need to reform it, they need to extend benefits for people who aren’t finding jobs, they really need to make changes and help people who need to collect,” said Colon.