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Sequestration: UI Emergency Benefits To Be Cut Beginning May 26

Dale Peinecke, new commissioner at the Department of Employment Security.

Dale Peinecke, new commissioner at the Department of Employment Security.

Unemployed workers are eligible for up to 26 weeks of regular unemployment insurance benefits and 37 weeks of federal Emergency Unemployment Compensation (EUC).  But beginning on May 26, because of the federal budget cuts know as sequestration, claimants will see their EUC benefits cut by 21.08 percent as they begin EUC or complete their current tier of benefits (the 37 weeks of EUC are divided in to three tiers).  Over 40,000 claimants are currently receiving EUC in Washington State.

This was part of the bad news at the quarterly Unemployment Insurance Advisory Committee meeting held on Monday.  In addition, even though unemployment is still at 7.3 percent in Washington State, the Employment Security Department has also had to reduce its workforce by almost 1,000 over the last 18 months.

Managing the reductions has been difficult but the agency is utilizing a LEAN management consultant from Point B to reorganize and improve efficiency.

This was the first advisory committee meeting for the new agency director, Commissioner Dale Peinecke.  Peinecke, a mechanical engineer by training, spent 23 years with Alcoa, before moving into mid-size companies in the aerospace industry.  He spent seven years on the  Snohomish County Workforce Development Council, including time as the chair, where he developed a passion for employment programs.


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