Nearly 5,000 Maine workers would be eligible for additional 13 weeks of benefits

Congresswoman Chellie Pingree voted today to extend unemployment benefits for Maine workers by an additional 13 weeks. Without this legislation, nearly 5,000 individuals in Maine would exhaust their unemployment benefits by the end of December. The bill passed the House and now goes on to the Senate.

“Unemployment benefits go directly into the economy to stimulate new business,” Pingree said. “And they also help those struggling to get by while the economy improves.”

Pingree met with Maine Labor Commissioner Laura Fortman to discuss the issue on Monday.

“These benefits are not just important to the families receiving them, but they also have a tremendous impact on the economy overall,” Pingree said. “This is not the time to let benefits expire for thousands of Maine workers.”

“Nationally the rate of job losses has slowed,” Pingree said. “And we are seeing some signs of the economy improving. But it’s not going to happen overnight and this legislation is critical to prevent thousands of people from exhausting their benefits. Since early August, benefits have run out for over 1,200 people and thousands more will stop getting checks by the end of the year unless we do something.”

The legislation passed by the House provides the extended benefits to states that have had an average unemployment rate of 8.5% or higher over the last three months. Maine’s rate for June, July and August was 8.6%, 8.5% and 8.6% respectively.

The legislation does not increase the deficit and pays for the extended benefits by extending for one year a federal unemployment tax (FUTA surtax) that has been in place for over 30 years and which President Bush proposed extending in his last budget (the tax costs employers $14 per year, per employee).