The Economy

Jobless benefits extension to help thousands here

Due to the extension of the Emergency Unemployment Compensation program, the State Department of Labor and Industrial Relations estimates that as many as 18,000 unemployed Hawaii residents will receive a total of $340 million in benefits.

The program was to have ended in November. However, President Barack Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 and extended the program until January 2012. Gov. Neil Abercrombie said in a statement that the infusion of federal dollars will help accelerate Hawaii’s economic recovery.

The state DLIR has mailed 2,349 notifications and forms to individuals who have exhausted state unemployment benefits, advising them to complete and return the forms and not use the online system or Hawaii Tele-Claim.

The DLIR also has mailed 600 revised monetary determinations to Hawaii residents who have received Tier I and Tier II benefits and were not eligible for the next tier. Upon receiving the revised determinations, individuals can call Hawaii Tele-Claim or use the online system to retroactively file claim certifications, the department said.

> Unemployment fund runs dry – Hawaii officials have begun using federal funds to pay jobless benefits because the state’s unemployment insurance fund has run out of money. The state Department of Labor and Industrial Relations estimates it will have to borrow $17 million by the end of the year to issue unemployment checks.

Hawaii is one of 32 states that are tapping a line of credit with the federal government to pay the benefits. The DLIR expects to continue borrowing through 2011 and into the first quarter of 2012 at an interest rate of 4 percent. The department's projections include a $1 million interest payment next September.

> Online jobless claim system expanded – Hawaii’s unemployment insurance Internet claims filing system will be expanded to allow nearly all unemployed individuals who file new applications for benefits to do so online beginning in January. In a soft launch of the system, selected claimants on Oahu were asked to file their claims online in December using the newly augmented Internet system. Following a month-long testing and monitoring period, the system becomes available to the public in January.

Currently, only individuals who live in Hawaii, are totally unemployed, worked only for Hawaii employers and have not established a UI claim in the prior year can file a new claim using the online system. Claimants will be allowed in March to reactivate their claims online, making the system more comprehensive. After this final phase is implemented, nearly all claimants will be able to completely file their initial claims over the Internet without delays.