Unemployed who lost benefits to get checks soon

By Cy Ryan

Friday, Dec. 17, 2010 | 4:48 p.m.

CARSON CITY — An estimated 7,400 jobless persons who lost their benefits due to the impasse in Congress, will be getting their back payments before Christmas.

Cindy Jones, administrator of the state Division of Employment Security, told the Legislative Interim Finance Committee Friday that President Obama has signed the bill to reauthorize payments for 13 months.

The division has been telling the unemployed to continue to file their claims so it would be ready to process the payments when Congress acted and the president approved the legislation.

The staff is working into the night to transfer the money to the banks so the jobless can use their debit cards to withdraw the money expected to be on Tuesday. It may be a little later for those jobless who still want to receive a paper check instead of using the debit card system.

Jones told the committee the federal legislation does not extend the benefits past the 99 weeks. She said 28,000 “would be falling off the rolls.”

The state fund to provide the first 26 weeks of jobless benefits has had to borrow $595 million from the federal government to cover these payments.

And Jones estimates the state may borrow $820 million.

Jones increased the unemployment tax on business effective Jan. 1 to start to replenish the state fund and to start repaying the federal government.