It looks like CA’s UI program is projecting a $1.6 Billion shortfall by the end of 2009.
From the LA Times:
SACRAMENTO — — With joblessness at a 12-year high and expected to head higher, California’s fund for paying unemployment benefits is about to go broke.
The fund, sustained mainly by taxes on employers, is projected to be deeply in the red as soon as March.
And the administration of Gov. Arnold Schwarzenegger is alarmed that it may have to keep the fund afloat by borrowing from the federal government and using state money to pay nearly $100 million in interest over two years.
At stake is the stability of a 73-year-old program that began during the Depression. In July, California paid unemployment benefits worth $567.4 million and received 267,000 new claims for jobless benefits.
Under the program, eligible workers can receive maximum benefits of $450 a week, depending on their previous earnings. Benefits last as long as 26 weeks, and many out-of-work people can qualify for a 13-week extension, recently approved by Congress.
Unemployment checks won’t bounce, even if the fund goes bust, the Employment Development Department says. But labor experts warn that growing deficits could prove costly to employers, workers and the state.
According to the latest projections, which already appear optimistic, the hole in the fund could exceed $1.6 billion at the end of 2009 and $3.5 billion by December 2010 — unless the economy turns around dramatically.
You can find the most recent (May 2008) EDD UI forecast, where the pitfall was first projected here.
Wow, when it rains, it really pours. California can’t even pass a budget, let alone fix this any time soon.
My concern is that this benefit will either be reduced or unavailable to those employees who are no longer employed through no fault of their own.
Let’s just hope that layoffs/job eliminations are kept at a minimum until Sacramento can figure this all out.
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I am so frustrated with the CA EDD. Has anyone been denied because of the phone interview rescheduling issue (the 1st step before being determined for the unemployment benefits)? My claim for the unemployment benefits was denied because I was not available for the phone interview.
Here is the story: I was laid off on November 25, 2009 (right before Thanksgiving). Applied for the unemployment benefits a couple days later and requested to reschedule a phone interview at the same time online. Requested to reschedule because I was gonna be out of the country for a month. Next day I left the country.
On December 11, 2009, got an email from the EDD stating that a phone interview was scheduled. I was confused how the EDD planned to have the interview when I couldn’t be reached obviously. On December 16, 2009, I emailed to the EDD asking again to reschedule the phone interview.
On January 8, 2010 (this is when I returned), I see an EDD notice informing me that I had a phone interview scheduled on December 31, 2009. I was like what? So, I emailed immediately to the EDD about it asking how come a phone interview was scheduled when I specifically requested to reschedule it.
Two days later I got another notice informing me that my claim was denied because I was not available. I was shocked! A week later (after trying to reach anyone from the EDD) I finally spoke with an agent where I was told that my claim was denied because the EDD had no information of my employment history in the state. FYI, I had been working in CA since 2007 and filed my income tax returns. The same agent explained that I didn’t need to file an appeal and should wait since another phone interview would be scheduled. Obviously, I missed the appeal date as of today.
Today, I got a call and was told that now I have two issues that affect my eligibility. 1st: I was not available for the phone interview (which is dumb). 2nd: EDD has no employment history (which is more dumb).
My frustrations are the following:
-I emailed the EDD twice (way before December 31) to reschedule the phone interview. Today, I was told that I should have appealed when I had the chance. I was like “Are you serious?” As I mentioned before, I was told that I didn’t have to appeal and the issue was cleared. I learned that my disqualification is indefinite. How can it possible.
The EDD received my rescheduling request on December 31, 2009, only. How is that possible? Emailed on December 1 and 16 and the EDD got the one sent on 16th only (it received on December 31). Unbelievable.
-The EDD doesn’t have my employment history in the state. Seriously, I had worked for almost 3 years in CA, filed income tax returns, and of course paid income taxes.
So, I am waiting for a supervisor call today. I truly hope that my issues would be resolved in my favor. Can anyone give any piece of advice how to deal with these issues? I only have one month of rent left to pay and, then I have nothing. I feel like kicking somebody’s ass now.
I have been on UE for almost 2 years now and had some up’s and down’s. (I didn’t have anti-anything meds) But it might be your former employers who have opposed your claim. You might want to explore that avenue, and if contacting the EDD office on line is an issue, then do it the old fashion way “Go to the local office and speak to a person” don’t wait for an invitation. I see on the EDD page (unde news about extension) new extensions are in the works and they also define what is available to date…. it is all based on when you lost your job not how many extensions are due you.
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