State to Accept Unemployment Funds

Deputy Governor John Morgan says he now thinks the state will accept 100-percent of federal stimulus dollars for unemployment.

The federal government has several requirements for states accepting unemployment funds like paying extra for dependents and allowing those working part-time to file for benefits.

Deputy Governor John Morgan says Governor Phil Bredesen and members of the State Legislature were concerned that the conditions could cost the state too much money when the federal stimulus dollars run out in two years.

“What we discovered was that the changes we would be required to make in our unemployment insurance program would be paid for as many as five, six, seven years maybe even longer depending on what happens with unemployment from 100-percent of federal funding.”

To accept the funds, some changes to the state’s unemployment statutes are needed and the legislature must sign off on those this session.

Morgan estimates the state has received about $2 billion worth of federal stimulus. He says it’s difficult to get an accurate count since some dollars have flowed directly to local governments and private entities. The White House website tracking the dollars, recovery.gov, shows about half of Tennessee’s money has been disbursed. Morgan did say that the Tennessee Department of Transportation will begin soliciting bids for many of its stimulus construction projects this week.