Tens of thousands of Nevada federal extended unemployment benefits will see their weekly check is greatly reduced because the automatic budget cuts known as sequestration, Tuesday national publication.
More than 20,000 weekly benefit check will be reduced 59% in Nevada, this week end in September. In Nevada, the average weekly benefit of $ 290, the biggest benefit is $ 407. In the reduction of the average weekly will join the $ 171-119 U.S. dollars, and, while those who receive the maximum benefit would be $ 167.
But the steep cuts already too serious a week, if Nevada outdated computer system may have been programmed to make the change at the end of March, when the automatic cut the federal budget by 10.7%, scheduled to take effect. If the cuts implemented, then the average weekly benefits, a drop of $ 31.
Many countries, including Nevada, have a computer system programming issues necessary changes earlier deadline, Renee Olsen said Nevada Department of Employment Security Administrator.
Because of this, countries are now forced to make bigger cuts federal fiscal year remaining weeks to comply with federal law.
In an e-mail to The Associated Press, Olsen said, Nevada reprogramming existing systems will take more than a year beyond - automatic federal budget cuts timetable established.
She said that it will also require a huge amount of money will be wasted, because the replacement of the state's 30-year-old unemployment insurance computer system - by the federal government to pay $ 35 million project has been ongoing efforts.
The new system is expected to be launched in September, the agency also announced Tuesday.
Olsen said that even if the new system is already in place, early in March, the federal budget will automatically require new programming has still not implemented immediately.
Officials said more than six month period the total amount of interest charged to the claim is the same, whether the decrease in March or August was lifted. Nevertheless, the direct hit of 59% will be painful cuts thousands of Nevada receiving welfare state, the highest unemployment rate in the country. Nevada's unemployment rate was 9.5% in July, well above the 7.4% national unemployment rate.
Be notified of acceptance of extended benefits in the future cut about four weeks ago, the agency said.
Once the new federal budget year beginning Oct. 1, a chunk of the cuts would be restored, although benefits will be reduced by 8%, from the previous level until the end of the program, on December 31, Olson said.
Reduction affects only the Federal Emergency Unemployment Compensation, normal state unemployment benefits after the expiration of 26 weeks begins. Emergency unemployment compensation paid entirely by the federal government, can last up to 47 weeks.
"We understand the significant burden reduction would lead to many of our customers, but this unfortunate situation is the result of federal budget cuts," Olsen said. "We have no choice but to comply with federal mandates required all countries to unemployment insurance scheme."
The agency's unemployment insurance system has been taken offline on Monday will not be available until September 1 again. During that time, Nevada will not be able to submit new claims for jobless benefits, the weekly claims or check the status of claims. Agency staff will assist in the claim by telephone and guidance will also be the agency's website.
"We want to make the transition as smooth as possible to the new system, with as little interference as possible," Olsen said. "But there may be a delay in payment of time the system is unavailable."
She said that the new system will be released in stages, released in September for parts of the claims. Unemployment insurance tax system should be operational by the end of this year, and will be released in October by the system to handle appeals.
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