Will New Jersey Governor-Elect Chris Christie Have to Reduce Unemployment Benefits to Help Balance the State's Budget?
New Jersey's unemployment rate and borrowing deficit: Not perfect together
As of the end of November 2009, New Jersey's unemployment rate was 9.7%. According to a recent article in the Star Ledger newspaper, as many as 175,000 people in New Jersey are receiving unemployment benefits. New Jersey has borrowed over $926 million dollars from the federal government since last March, not including extensions on unemployment benefits. Unfortunately, Christie and other Republicans are considering making cuts in unemployment benefits to help dig the state out of its financial hole.
Collecting unemployment in New Jersey: Better than most states
New Jersey has one of the highest maximum weekly unemployment benefit rates in the United States: $600 for claims filed after January 1st, 2010. Compare it to other nearby states like New York whose maximum benefit rate is $425. Worker advocates say New Jersey needs the high rate because of the its high standard of living. Those on unemployment in New Jersey also have the opportunity to obtain a tuition waiver so they can go back to school tuition free. The future Christie administration says reducing New Jersey's unemployment benefits to be more in line with New York is one consideration to help balance New Jersey's budget. State Democrats vow to fight such cuts.
Will reducing unemployment benefits help or hurt?
As someone who is collecting unemployment in New Jersey and going to school to change careers, I do worry what will happen when Christie takes office. One one hand, there are lazy people collecting unemployment who should be forced into at least looking for work. On the other hand, the economy is still so bad that it is next to impossible to find a job let alone one that can adequately cover the high living expenses in New Jersey. And if we reduce unemployment benefits, will that force more people to simply seek other government assistance programs like welfare? Will unemployed students like me be forced into quitting school?
Then we must consider how unemployment taxes affect companies and hiring. According the Star Ledger article, in July 2010, unemployment taxes will go up in New Jersey. Will that cause employers to cut hiring to save money? Will some companies consider moving out of state, leading to even more unemployed New Jerseans?
No doubt, New Jersey is in dire financial straits. But will reducing unemployment benefits be one of the best ways to save money or will it cause more hardships for New Jersey's unemployed?
Published by J Budd, RN - Featured Contributor in Health & Wellness
I am a registered nurse and former radio broadcast journalist in the NYC/NJ area for over a decade. Some of the stations I have worked with include Bloomberg News Radio, Sirius Satellite Radio, Fox News Rad... View profile
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7 Comments
Post a CommentTo Me the whole thing is nonsense and i regret the fact that he won ! =(
I personally feel that it will hurt Newjerseyans because Many people work hard,and strive to get where their at, However it will leave them only two things Homeless and miserable. thank you
Good info and food for thought!
Nicely Written :)
Sheesh I would have gone to school in Jersey if it meant not having to pay for school being unemployed. I'm hoping that this means you get to waive your tuition rights. But at the same time benefits such as these give some people an incentive not to work which may only dig a deeper hole for New Jersey.
I didn't even GET unemployment when I moved out of state and was unable to commute or transfer. It was VERY hard for me to find a job.
As a conservative, I think that governments offer way too many services, many of which could be construed as unnecessary. I think the governor-elect needs to take a hard look at the whole picture and make some tough choices. I hope he doesn't cut your benefits and force you to leave school. If you pay in to the pool, you should expect not to have your benefits cut. It is insurance in that respect. When you make a claim, you don't expect to get less than you paid for.