November 17, 2016
The Pennsylvania Department of Labor & Industry announced Thursday that 600 workers would be laid off because funding to administer unemployment benefits to out-of-work residents was not approved.
Department Secretary Kathy Manderino blamed the layoffs on the state Senate's failure to vote on a bill designed to modernize how unemployment benefits are handled.
“This was not a last-minute ask, but rather what should have been a logical conclusion to conversations that began in April about extending a statute that was already in place and that has allowed the department to administer unemployment benefits in a timely manner,” Manderino said.
House Bill 2375, which was passed by the state House in a bipartisan effort on Oct. 19, would have provided $57.5 million in funding to improve the quality, efficiency and timeliness of unemployment services.
Governor Tom Wolf warned that layoffs were imminent after the Senate adjourned Wednesday night.
“The failure to pass this bill now also means that the unemployment insurance system will be forced to lay off workers and close centers who process claims for the very people who are newly eligible to receive benefits because they are out of work and looking for a new job," Wolf said.
Wednesday was the last day Senate would convene.
