Automatic budget cuts mean no checks for some jobless Missourians

by Elizabeth Crisp, St. Louis Post Dispatch
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Missourians receiving unemployment benefits through a federally-funded program for people who have been out of work long-term won’t receive payments for next week, the last week in July and a week in September because of the federal sequestration.

Under the sequestration —the automatic federal spending cuts that took effect in March—states have had to cut theirEmergency Unemployment Compensation program payouts by 10.7 percent through September.

According to the Missouri Division of Employment Security, withholding Emergency Unemployment Compensation payments for three weeks here will reduce the program by about $15 million and meet the requirement.

Missouri provides up to 20 weeks of unemployment compensation, and then residents who are still out of work can apply for the extended federal benefits for 21.6 additional weeks. The Emergency Unemployment Compensation program is set to expire in December.

According to an analysis from Stateline, a Pew Charitable Trusts-backed news service that focuses on state government issues, 1.3 percent of Missouri’s workforce was receiving the federally-funded Emergency Unemployment Compensation benefits in January.

Missouri’s unemployment rate has been on a steady decline since its 9.6 percent peak in August 2009.

According to the Missouri Department of Economic Development, the state’s seasonally-adjusted unemployment rate fell to 6.6 percent last month.

AT A GLANCE

Missourians currently receiving benefits through the federal Emergency Unemployment Compensation program will not receive benefits for the weeks ending June 1, July 27 andSept. 21.

The sequestration reduction will not affect unemployed Missourians who are on the first 20 weeks state-funded benefits.