Jobless fund gets federal boost

By Curtis Lum
Advertiser Staff Writer

The state's unemploy-ment trust fund received a much-needed boost this week with the transfer of nearly $31 million from the federal government.

The U.S. Department of Labor announced Thursday that it was transferring $8 billion in excess funds from the federal unemployment account to the states. The payout was authorized by the Job Creation and Worker Assistance Act of 2002, more commonly known as the "economic stimulus package."

Hawai'i's share of the payout is $30.8 million, 100 times more than its previous high of about $300,000, said state Labor Department spokesman Tom Jackson. He said each state is receiving more than usual because of the lingering effects of the Sept. 11 attacks.

"It's part of the stimulus package, but it also is to help the states because of our having extended (unemployment) benefits. It's to give us a helping hand," Jackson said.

In a special session last year, the Hawai'i Legislature approved the extension of unemployment benefits by 13 weeks because of the economic hardship following Sept. 11. Typically, benefits last up to 26 weeks.

The federal government also extended benefits by 13 weeks through the end of the year. Jackson said the state will be reimbursed for those costs at a later date.

The state's employment woes are reflected in the state's unemployment numbers. As of March 9, 14,912 Hawai'i residents were receiving benefits, nearly double the 8,900 at the same period last year, Jackson said.

The Legislature must pass a measure to allow the state Labor Department to spend the $31 million, Jackson said.