CARSON CITY -More than 20,000 Nevadans will see a 59 percent reduction in their federal extended unemployment benefits starting the week ending Aug. 31 because of the federal budget cuts known as sequestration.
The federal sequestration cuts will only affect federal extended benefits, also known as Emergency Unemployment Compensation (EUC), which begins after a claimant has exhausted their regular unemployment benefits which typically last up to 26 weeks.
"We understand the significant burden this reduction will cause for many of our clients, however this unfortunate circumstance is the result of federal budget cuts," said Renee Olson, administrator for the Employment Security Division of the Department of Employment, Training and Rehabilitation. "We have no choice but to comply with the federal mandates required of all state unemployment insurance programs."
EUC is paid in Nevada for a total of up to 47 weeks and is paid for by the federal government. The cuts will affect anyone who is currently filing for EUC or those who establish a new EUC claim after Aug. 31, 2013. The 59 percent benefit reduction will be in effect until the end of September. Oct. 1 is the start of a new federal fiscal year. After Oct. 1, the majority of EUC benefits will be restored, but still reduced by approximately 8 percent, instead of 59 percent, until the program ends Dec. 31, 2013.
The federal sequestration cuts were scheduled to take effect at the end of March 2013, reducing EUC benefits by 10.7 percent.
However, many states, including Nevada encountered significant programming difficulties in making the necessary changes by that deadline, Olson said.
As a result, DETR must reduce benefits by a larger amount to comply with federal law. However, the total amount deducted from claimants' benefits is the same whether the reductions were instituted in March or August.
Olson emphasized the federal cuts will not reduce regular unemployment insurance benefits, nor will they reduce the duration of extended benefits, only the weekly and maximum benefit amounts.
The number of EUC weeks an individual is entitled to receive will not change. The average weekly benefit amount in Nevada is $290 and the maximum benefit amount is $407. The maximum length for benefits, including EUC, is 73 weeks.[[In-content Ad]]
