The Oregon Employment Department is warning that a segment of jobless Oregonians receiving benefits should expect smaller checks because of sequestration.
The decision was made by the federal Department of Labor. But as the administrator of long-term unemployment benefits, it’s on the state Employment Department to implement the cut.
OED’s Tom Fuller says the benefit reduction applies to people receiving an extended Emergency Unemployment Compensation or EUC check.
“Sequestration will only affect about 28,000 people who are receiving what we call EUC,” Fuller explins. “Those people are going to see a decrease in the amount of their weekly benefit.”
The cut amounts to just over ten percent. For example, if a person receives $300 a week in long-term benefits, they can expect to get $30 dollars less per payment, starting mid-March.
Everyone else, in the first six months of their unemployment payments, will see no change. Their money lies in a state trust fund.
The state will have to calculate the reduction on each individual benefit check. Fuller says the federal government is providing $40,000 to deal with administrative costs, but that’s considerably less than the state will spend implementing the cutback.