Rhode Island Department of Labor and Training

 

 

Department of Labor and Training requests $40 million for
Unemployment Insurance Trust Fund

July 3, 2009

     
 

This week, the RI Department of Labor and Training requested a $40-million line of credit so that the state may continue to pay unemployment insurance benefits over the next three months. Under the American Recovery and Reinvestment Act, the U.S. government allows state unemployment insurance programs to borrow interest-free from the federal unemployment insurance trust fund through December 2010.

Because the line of credit from the federal government is both guaranteed and immediate, unemployment insurance customers will not experience any delays in receiving their weekly payments.

As of Thursday, July 2, the balance of the state unemployment insurance trust fund had reached $15,285,363.69; the low balance triggered Department of Labor and Training officials to request a line of credit in order to ensure that Rhode Island unemployment insurance payments continue without interruption.

Fourteen states including Rhode Island have borrowed under the interest-free provision this year. In March 2009, the federal government also approved a three-month line of credit for the Rhode Island trust fund; at that time, the department was approved for a $77 million credit line, of which it drew down approximately $71 million.  

Since January 1, 2009, the Rhode Island Department of Labor and Training has paid nearly $374 million in regular, state extended and federal emergency unemployment benefits. Of that sum, more than $235 million was paid directly from the state unemployment insurance trust fund. Both the state and federal unemployment insurance trust funds are financed through employer contributions.

About the RI Department of Labor and Training

The RI Department of Labor and Training offers employment services, educational services and economic opportunity to both individuals and employers. DLT protects Rhode Islandís workforce by enforcing labor laws, prevailing wage rates and workplace health and safety standards. The department also provides temporary income support to unemployed and temporarily disabled workers. For more information on the programs and services available to all Rhode Islanders, please call the RI Department of Labor and Training at (401) 462-8000 or visit the web site at www.dlt.ri.gov. 


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