Assemblymembers Announce New Financial Assistance for the State’s Employment Development Department
FOR IMMEDIATE RELEASE
CONTACT: Shannon Murphy (916) 319-2408 February 10, 2009
Brian O’Hara (916) 319-2720
SACRAMENTO –As funding for state services dries up due to the ongoing budget crisis, Assembly Rules Committee Chair Ted Lieu (D-Torrance) today was joined by Assemblymembers Juan Arambula (D-Fresno), Joe Coto (D-San Jose), Assemblymember Noreen Evans (D-Santa Rosa), Assemblymember Manny Perez (D-Coachella) and Assemblymember Sandré Swanson (D-Alameda) to announce new aid to the state Employment Development Department (EDD), which is being swamped by an average of two million calls per day during peak times. The aid comes from funds freed up by a 10% cut in the Assembly’s operating budget.
“Right now, we all have to tighten our belts and pass a responsible budget that keeps Californians working,” said Assembly Speaker Karen Bass (D-Los Angeles), who was attending budget negotiations during the announcement. “This cut to our operating budget has freed up funds that will be transferred to some of the state’s most critical programs, including $2 million for EDD in their work to help Californians who have lost their jobs get the help they need.”
“At a time when California is experiencing record high unemployment, the State Assembly is committed to helping unemployed workers who are struggling to get by in these tough economic times," said Assemblymember Lieu who, as Chair of the Assembly Rules committee, is responsible for overseeing the Assembly’s operating budget. “Transferring part of our budget to EDD will help maintain a basic safety net for unemployed Californians.”
As the state’s record-high 9.3% unemployment rate continues to climb, the new line of funding made possible by a 10% cut Assembly’s operating budget will help ensure EDD can continue serving Californians during these trying economic circumstances. Speaker Bass ordered the budget reduction in January as part of the Assembly’s ongoing response to the state’s fiscal crisis.
“When you are facing unemployment or layoff, the last thing you want to hear is a busy signal when you call for help,” added Assemblymember Evans, Chair of the Assembly’s Budget Committee. “During these difficult economic times, spending reductions must be shared by everyone, but we need to fund programs that help Californians get back on their feet.”
EDD has sited errors on claim forms – a major obstacle for receiving benefits quickly – as a cause of increased call volume. While additional staff is needed, it will not likely provide immediate relief due to the training time for new staff to become fully functional.
“When people are out of work in these trying economic times, we need to be responsible by funding programs that create jobs and help Californians find jobs,” continued Joe Coto, Chair of the Assembly Insurance Committee, which oversees unemployment compensation. “This new funding will be critical in getting people the benefits they earned.”
The funds will be used by EDD to conduct Unemployment Insurance seminars in major rural and metropolitan areas, provide personal computers to One-Stop partners, procure remote access equipment, and support a public information campaign with new outreach technologies.
“This fund transfer from the Assembly is a first critical step to ensure EDD has the money to meet this challenge,” said Assemblymember Arambula, who chairs the Assembly Budget Subcommittee that oversees EDD. “With Speaker Bass' leadership, Assemblymembers Coto, Swanson and I have introduced legislation that will help secure federal stimulus funding to upgrade the EDD computer and call center systems, and as evidenced by today's action, we will do whatever is necessary to make sure unemployed Californians get the assistance they need.”
“These tough economic times require shared sacrifice,” said Assemblymember Swanson, Chair of the Assembly Labor and Employment Committee. “We are committed to doing all we can to help Californians in need.”
In addition to the operating budget cut and the funding transfer to EDD, Speaker Bass and the Assembly have recently introduced bills to aid unemployed Californians. Under Speaker Bass’ leadership, the Assembly has introducing a green economic stimulus package that will create more than 40,000 jobs and the Assembly is pursuing several foreclosure relief and mortgage reform proposals.
Assemblymember Joe Coto says the huge influx of calls in the past few months to EDD has created a backlog of claims. (Audio Clip of News Conference)
