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TOPEKA — The Kansas Department of Labor was notified today that its application to receive nearly $69 million under the unemployment insurance modernization provisions of the American Recovery and Reinvestment Act has been approved by the U.S. Department of Labor. The money is earmarked for the state’s Unemployment Insurance Trust Fund, through which state unemployment benefits are paid. Kansas is among a handful of states to have received its full share of funds under this provision of the federal Recovery Act. Kansas became eligible to apply for the funds following the 2009 legislative session when certain changes were made to the state’s employment security laws. Those changes included adopting an alternate wage base period for use in determining an individual’s eligibility for UI benefits based on income; codifying a long-time practice of allowing UI benefits to those seeking part-time work; and providing for up to 26 additional weeks of benefits for individuals participating in approved training programs. These changes go into effect on January 1, 2010. The transfer of $68,970,143 to the state’s UI Trust Fund is expected to occur within seven days. "It was less than one month ago that I was joined by aviation and business leaders in Wichita, signing the legislation that qualified Kansas for these funds – and already, we’re seeing how swift action can achieve swift results," said Governor Mark Parkinson. "These resources will help out-of-work Kansans put food on the table while they learn new skills for a new job, and that is a critical step in turning our economy around." Kansas Labor Secretary Jim Garner said the additional funds are coming at a critical time. "This $69 million will definitely help our UI Trust Fund at a time of unprecedented demand for unemployment benefits and it is money going into the fund that is not collected from Kansas employers," Garner said. Under the guidelines of the Recovery Act, Kansas can use the funds to pay unemployment benefits or, if appropriated by the legislature, for administering its unemployment insurance program or delivering employment services. The Recovery Act made a total of $7 billion available in UI modernization incentive payments to states that include certain eligibility provisions in their UI programs. Each state can qualify for a share of those funds by showing that its law includes those provisions. Kansas’ approved application will be posted at the U.S. Department of Labor’s Employment and Training Administration Web site at http://www.doleta.gov/recovery/. Kansas Department of Labor News Room Kansas Department of Labor News Room Archive
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