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Governor’s Office doing ‘homework’ on jobless benefits extension

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Arizonans whose enhanced jobless benefits ran out this week may get a chance for some additional cash.

But it will depend on Gov. Doug Ducey.

Aides to the governor confirmed Monday the Governor’s Office is reviewing the offer by President Trump to provide an extra $400 a week in payments if the state picks up $100 of that.

Treasury Secretary Steve Mnuchin said that states can use money they already received under the federal Coronavirus Aid, Relief and Economic Security Act to provide their match. And Ducey had previously set aside some of the CARES dollars he had received.

But Daniel Scarpinato, the governor’s chief of staff, told Capitol Media Services that it’s not that simple. He said his boss needs more information before committing the state — and its resources — to additional jobless aid.

“The governor is very thankful to the president,” he said. “We’re digging into the details and figuring out what the art of the possible is.”

But Scarpinato said Ducey “does want to help Arizonans who have been put out of work through no fault of their own.”

One of those details that Ducey wants figured out first is how much it would cost the state.

Scarpinato had no firm figures. But Dave Wells, research director for the Grand Canyon Institute, penciled out the price tag of Arizona’s share at about $65 million a week.

“We’ve got to crunch the numbers,” Scarpinato said.

And there’s something else: Can Ducey simply reallocate the funds by himself for jobless benefits or does he need legislative approval?

“We’re doing our homework,” is all Scarpinato would say.

Even if Ducey goes along, questions remain when the new checks will arrive — and how long they will last.

The latest action by the president comes after congressional authorization for the extra $600 in Federal Pandemic Unemployment Compensation ran out last week. When federal lawmakers could not reach a deal, Trump signed a memo with the $400 figure and the 25 percent match.

At last count there were about 260,000 Arizonans receiving regular state benefits, which are capped at $240 a week. That does not include another 440,000 who are collecting Pandemic Unemployment Assistance, a special program for those ineligible for regular state benefits such as the self-employed.

On paper, the new program is supposed to apply retroactive to Aug. 1, right after the $600 benefits expired. But there is no clear guidance from Washington about when the money will be available.

There also are questions about how quickly the state Department of Economic Security can convert its current programming — one that ran into repeated problems with the current jobless crush — to deal with the new benefits.

Trump’s plan is to take the cash from the federal Disaster Relief Fund which currently has about $70 billion. According to the presidential order, the additional payments will last until the fund is drawn down to $25 billion or Dec. 6, whichever comes first.

The Committee for a Responsible Federal Budget estimates there’s only enough in the account to provide benefits for five weeks, essentially through the end of August. The Grand Canyon Institute came up with a similar projection.

Even just that delay, however, could provide some breathing room for Congress and the president to come up with a deal.

When talks broke down, Democrats were insistent on keeping the $600 a week. Republicans countered with $200 a week through the end of September, with benefits equal to 70 percent of what people were making for the balance of the year.

Then there’s the legal question of whether Trump has the authority to simply redirect the dollars from the Disaster Relief Fund.

At this point there are no legal challenges, with even U.S. House Speaker Nancy Pelosi, while questioning Trump’s authority, apparently loath to do anything that would slow up the checks.

Not everyone who has been getting the extra jobless benefits would benefit.

Trump’s directive specifically excludes anyone who is not getting at least $100 a week in state jobless benefits. That means it may provide no real help to the people who were in the lowest-paid jobs, including people whose compensation largely included tips.

There was no immediate response from the Department of Economic Security as to how many of those 260,000 Arizonans currently collecting basic jobless benefits might be ineligible with that threshhold. But in a Twitter post, Eliza Forsythe, a labor economist and assistant professor at the University of Illinois at Urbana-Champaign, estimated about 6 percent of regular unemployment insurance recipients receive less than that $100 cutoff.

 

One comment

  1. This isn’t 100% true about everyone getting the 240. I recieve 117 with out taxes after taxes I recieve $104 prior to covid-19 I was working two jobs making $500 a week with just one. I dont understand why I am receiving the lowest of the low. I wish I got the $240.

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