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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Day: May 25, 2012

Unemployment Benefits – Pennsylvania, Florida

  • Pennsylvania’s unemployment fund owes feds $3.87 billion, By Jane M. Von Bergen, May 23, 2012, Philadelphia Inquirer: “The fund that pays Pennsylvania’s unemployment benefits is running in the red, and lawmakers are grappling with how to remedy that. Compounding matters is that the state owes the federal government $3.87 billion it has borrowed to pay jobless claims because of the recession. There seems to be little disagreement about how to pay back the money: Legislators are likely to pass a bill that will allow the state to float a bond. ‘This is akin to refinancing your house,’ said Pennsylvania Secretary of Labor Julia Hearthway. ‘It’s the lowest interest rate we’re going to have for years to come.’ But there is considerable debate about how to solve the underlying problem: that the fund is paying out more than it takes in. Pennsylvania’s fund ‘is structurally insolvent,’ according to the department’s analysis. In 2011, it paid out $3 billion but collected only $2.7 billion…”
  • Groups claim thousands being denied jobless benefits in Florida, By Toluse Olorunnipa, May 24, 2012, Miami Herald: “A national workers’ rights group has filed a federal complaint over Florida’s revamped unemployment compensation system, claiming that the Sunshine State has become the most difficult place in the nation for unemployed people seeking benefits. Last year, Florida overhauled its unemployment compensation system, reducing the number of weeks available and enacting several new requirements for those who seek jobless benefits. The National Employment Law Project (NELP) and Florida Legal Services say the changes have slammed tens of thousands of unemployed Floridians. The complaints say only 15 percent of eligible unemployed Floridians are actually getting benefits, ranking Florida dead last in a nation that averages 27 percent…”
  • Florida law thwarts jobless benefits, advocates tell feds, By Jim Stratton, May 24, 2012, Orlando Sentinel: “Advocates for the unemployed called Thursday for a federal investigation of a Florida law they say systematically tries to prevent laid-off workers from receiving jobless benefits. State regulations approved last year have made Florida the toughest state in the nation in which to get jobless benefits, detractors say, lowering significantly the percentage of the unemployed who now qualify for benefits. The National Employment Law Project and Florida Legal Services want the U.S. Labor Department to investigate and overturn the regulations that tightened the state’s unemployment-eligibility rules…”

State Medicaid Cuts – Illinois

  • Legislature OKs Medicaid cuts; no vote yet on cigarette tax, By Doug Finke and Chris Wetterich, May 24, 2012, State Journal-Register: “The Illinois House and Senate on Thursday passed pieces of a Medicaid overhaul, including legislation slashing $1.6 billion from the program. Gov. Pat Quinn praised legislators but said their work won’t be complete until they pass a $1-per-pack cigarette tax. ‘Raising the price of cigarettes is also sound health policy. Smoking-related conditions are a significant burden on our Medicaid system, and this measure will improve the health of our people and reduce future Medicaid costs,’ he said in a statement. The House voted 94-22 and the Senate voted 44-13 to adopt the cuts in Senate Bill 2840, which range from outright elimination of some programs – like Illinois Cares Rx, a prescription drug assistance program for seniors – to taking extra steps to ensure that those receiving aid are entitled to it. The bill now heads to Quinn’s desk…”
  • Illinois Legislature passes $1.6 billion in Medicaid cuts, By Ray Long and Alissa Groeninger, May 25, 2012, Chicago Tribune: “Hundreds of thousands of poor Illinoisans would lose health coverage, prescription drug discounts for seniors would be dropped and dental care for adults would be greatly curtailed as part of $1.6 billion in budget cuts lawmakers approved Thursday. The major Medicaid reductions ignited anger in some lawmakers who say the cutbacks will jeopardize the lives of the state’s most vulnerable residents. ‘I don’t know where it’s written in the law that this has to be balanced on the backs of poor people, on the backs of seniors, on the backs of the aged, blind and disabled,’ said Rep. Mary Flowers, D-Chicago. But supporters argued failure to approve the bill could lead to cuts throughout state government and result in the collapse of the entire Medicaid system…”