Mar 13 2013
TO: Members of the South Carolina General Assembly FROM: John L. Finan, Agency Administrator
SC Department of Employment and Workforce SUBJECT: Federal Sequestration Impact on DEW
It appears recent automatic cuts to the federal budget (sequestration) will impact the amount of benefits S.C. claimants on Emergency Unemployment Compensation (EUC—currently 29 weeks) receive.
We do not yet know whether weekly benefits will be reduced by a certain percentage, or if the number of weeks authorized will be changed. We are currently awaiting guidance from the U.S. Department of Labor (DOL).
Any reductions will most likely begin in April.
While other federal programs offered in South Carolina were protected from the sequestration, federal EUC benefits were not exempted. These changes will not affect any claimants on South Carolina state Unemployment Insurance (UI) benefits (the first 20 weeks of benefits).
EUC is a temporary federal program created in 2008 to assist individuals who have exhausted regular state benefits. In the Palmetto State, this federal EUC program provides up to an additional 29 weeks of benefits for qualifying individuals.
There are approximately 22,000 claimants currently receiving EUC in our state.
The S.C. Department of Employment and Workforce (DEW) is working closely with DOL, which will be offering guidance to all states on how to implement cuts to EUC programs as well as to other federal funding streams that fund the agency’s day-to-day administration and operations.
The agency is currently analyzing how to offset these budget reductions.