Please ensure Javascript is enabled for purposes of website accessibility
Walters: Politics, Snafus Stall Jobless Benefits
dan_walters
By Dan Walters, CalMatters Commentary
Published 4 years ago on
August 26, 2020

Share

The good news for millions of out-of-work California workers is that the federal government is offering them an additional $300 per week in unemployment insurance benefits.

The not-so-good news is that the bonus is just half of the $600 in extra jobless benefits that expired nearly a month ago, it’s uncertain when it will begin and it may last only a few weeks.

Dan Walters

Opinion

There’s another problem. The state Employment Development Department is already behind on processing hundreds of thousands of unemployment insurance claims so whenever the Federal Emergency Management Agency sends more money to California, it could take many weeks for cash to reach stressed-out workers.

The payments are desperately needed as California grapples with its highest unemployment level since the Great Depression, induced by shutdowns ordered to combat the COVID-19 pandemic.

The state’s official unemployment rate topped 16% in June but fell to 13.3% in July, as businesses rehired in response to Gov. Gavin Newsom’s initial reopening. However, the July rate, announced last week, was based on federal surveys conducted during the week of July 12, which exactly coincided with Newsom’s second shutdown order.

California’s Official 13.3% Jobless Rate in July Was Fifth Highest of Any State

Since then, unemployment has soared again and could approach 20% this month if more than a half-million workers who have left the labor force since last year are counted. They push total real-world unemployment to more than 3 million, identical to the 3.1 million Californians now receiving state and federal unemployment insurance benefits.

The data indicate that California’s economy has, in relative terms, been hit harder than most other states, and Southern California is the epicenter of our dramatic economic decline.

California’s official 13.3% jobless rate in July was the fifth highest of any state. Los Angeles County had the second-highest rate among California’s 58 counties at 18.2%, and the Los Angeles-Orange County metropolitan area’s 18.1% rate was the ninth highest of the nation’s 389 recognized regions.

Behind those numbers are millions of families worried whether they can make their rent, mortgage, and utility payments, put food on the table and otherwise survive the pandemic, the recession and, more recently, horrendous heat waves and terrible wildfires.

State and federal unemployment insurance benefits, more than $67 billion, were keys to familial survival in the pandemic’s first months. That includes the $600 weekly bonus money that Congress and President Donald Trump provided in the CARES Act, but it expired on July 31 and Trump and Congress have been at loggerheads ever since on additional relief.

Officials Blamed the Suddenness of Crisis and Antiquated Computer System for the Delays

Meanwhile, however, the chronic inability of the Employment Development Department to quickly deliver approved benefits is making matters worse.

Administration officials were summoned to an Assembly budget subcommittee hearing this week to defend themselves and receive a bit of a tongue-lashing from lawmakers whose constituents are complaining about employment department lethargy.

Officials blamed the suddenness of the crisis and a very antiquated computer system for the delays but said things are improving.

“We’ve seen great movement in the last four weeks,” Sharon Hilliard, director of the Employment Development Department, told lawmakers, adding, “We’re going in the right direction.”

Subcommittee members were skeptical and one, Assemblyman David Chiu, was sharply critical of the department’s reliance on Deloitte, a major consulting firm, for trying to shore up its present computer system.

“We’ve seen this movie before,” Chiu, a San Francisco Democrat, told Hilliard. “There’s been failure after failure after failure.”

Newsom has created a “strike team” to delve into the employment department’s shortcomings and propose solutions. Meanwhile, hundreds of thousands of unemployed Californians await benefit payments that for many could be the difference between survival and homelessness.

CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters. For more stories by Dan Walters, go to calmatters.org/commentary.

[activecampaign form=19]

DON'T MISS

Paul McCartney Becomes Britain’s First Billionaire Musician

DON'T MISS

California Cracked Down After a Crash Killed 13 Farmworkers. Why Are Workers Still Dying on the Road?

DON'T MISS

These Rare Chainsaws Are Worth Big Bucks to Collectors

DON'T MISS

Jewish Lobby Presses California Lawmakers to Combat Antisemitism

DON'T MISS

Opinion: How Urban Renewal Ruined Everything

DON'T MISS

California Wine Squeezed Dry: Insiders Say It’s Time to Pull up Acreage

DON'T MISS

Alabama Mercedes Employees Overwhelmingly Vote Against Joining Union, Slowing UAW Effort in South

DON'T MISS

Stock Market Today: Dow Finishes Above 40,000 to Cap Wall Street’s Latest Winning Week

DON'T MISS

Where Do State Lawmakers Stand on War in Gaza, Campus Protests?

DON'T MISS

High-Speed Rail Now Working to Extend Valley Line to 171 Miles

UP NEXT

How California’s New Fixed Utility Charge Got Its Sneaky Start in the Legislature

UP NEXT

Empowering Education: Join the Fight for California Kids’ Literacy

UP NEXT

Newsom’s No New Taxes Pledge Upsets California Progressives

UP NEXT

SF Unified Flirts with Insolvency. It’s Not the Only District in California.

UP NEXT

Sustainable Farms Need to Come Together, Not Cast Blame Over California Methane Program

UP NEXT

Will California Supreme Court Knock Anti-Tax Measure Off the November Ballot?

UP NEXT

A Sustainable Future for Fresno: Rethinking Our Hydrogen Strategy

UP NEXT

Politicians Keep Shifting Blame as California’s Homelessness Crisis Worsens

UP NEXT

California Schools Can’t Keep Pace with Utility Bills. Lawmakers Must Fix New Solar Rules.

UP NEXT

CA Restaurants Shouldn’t Be Shocked That ‘Junk Fees’ Ban Applies to Them

Jewish Lobby Presses California Lawmakers to Combat Antisemitism

24 hours ago

Opinion: How Urban Renewal Ruined Everything

1 day ago

California Wine Squeezed Dry: Insiders Say It’s Time to Pull up Acreage

1 day ago

Alabama Mercedes Employees Overwhelmingly Vote Against Joining Union, Slowing UAW Effort in South

1 day ago

Stock Market Today: Dow Finishes Above 40,000 to Cap Wall Street’s Latest Winning Week

1 day ago

Where Do State Lawmakers Stand on War in Gaza, Campus Protests?

1 day ago

High-Speed Rail Now Working to Extend Valley Line to 171 Miles

1 day ago

Beautify Fresno Combines Dog Adoption, Litter Removal in Unique Saturday Event

1 day ago

Bulldogs’ Gilmore Named MW Softball Pitcher of the Year

1 day ago

The Latest | Dozens of Israeli Protesters Attack a Truck in an Apparent Effort to Block Gaza Aid

1 day ago

Paul McCartney Becomes Britain’s First Billionaire Musician

LONDON — Paul McCartney is a billionaire Beatle. According to figures released Friday, the former member of the Fab Four is the first Britis...

11 hours ago

11 hours ago

Paul McCartney Becomes Britain’s First Billionaire Musician

12 hours ago

California Cracked Down After a Crash Killed 13 Farmworkers. Why Are Workers Still Dying on the Road?

13 hours ago

These Rare Chainsaws Are Worth Big Bucks to Collectors

24 hours ago

Jewish Lobby Presses California Lawmakers to Combat Antisemitism

1 day ago

Opinion: How Urban Renewal Ruined Everything

1 day ago

California Wine Squeezed Dry: Insiders Say It’s Time to Pull up Acreage

1 day ago

Alabama Mercedes Employees Overwhelmingly Vote Against Joining Union, Slowing UAW Effort in South

1 day ago

Stock Market Today: Dow Finishes Above 40,000 to Cap Wall Street’s Latest Winning Week

MENU

CONNECT WITH US

Search

Send this to a friend