Congressman Geoff Davis (R-KY), Chairman of the Subcommittee on Human Resources of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing reviewing unemployment benefit proposals in the President’s latest jobs plan and assessing whether they will help the long-term unemployed return to work. The hearing will take place on Thursday, October 6, 2011, in Room B-318 Rayburn House Office Building, beginning at 9:00 A.M.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. Witnesses will include a representative of the U.S. Department of Labor (DOL) as well as other public and private sector experts on unemployment benefits and employment security policies designed to promote reemployment.  However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing

BACKGROUND:

In August 2011 (the most recent official data), the U.S. unemployment rate was 9.1 percent, 14.0 million individuals were unemployed, the average duration of unemployment was a record high of over 40 weeks, and 6.0 million individuals were long-term unemployed – defined as unemployed for 27 weeks of longer.

The Federal-State unemployment compensation program created by the Social Security Act of 1935 assists unemployed individuals by offering weekly unemployment benefit checks while they search for work.  According to DOL, in order to be eligible for benefits jobless workers must have a history of attachment to the workforce and must be able and available for work.

As a result of a series of Federal extended benefit laws enacted since 2008 that now provide up 73 weeks of Federal benefits, the maximum number of weeks of unemployment benefits payable per person has grown to a record 99 weeks, which is currently available in 21 States with especially high unemployment rates.  Since mid-2008, $180 billion in Federal extended unemployment benefits have been paid, with most supported by Federal general revenues.  

As weeks of unemployment benefits and total spending have grown, so have total payments made in error. According to DOL, improper payments of unemployment benefits reached record highs in 2010, with $17.2 billion paid in error, equal to 11.2% of all payments.

On September 8, 2011, the President announced his most recent plan to assist the long-term unemployed in returning to work.  This plan would extend the availability of up to 99 weeks of total unemployment benefits through CY 2012, at an estimated cost of $44 billion.  Also within the Subcommittee’s jurisdiction, the President’s plan proposes providing an additional $10 billion in one-time Federal funds to States to promote various return-to-work efforts, including wage subsidies, subsidies for employer training of UI recipients (along the lines of the “Georgia Works” program), work sharing, wage insurance, and reemployment assessments, among other of what the Administration terms “promising strategies.”    

In announcing the hearing, Chairman Davis said, “This hearing will review a number of measures the President recently proposed to assist especially the long-term unemployed in returning to work. I hope we can build on our previous findings on the importance of better engaging the unemployed and providing States more flexibility in assisting them. I look forward to identifying possible common ground when it comes to helping more long-term unemployed beneficiaries return to work, and doing so in a fiscally responsible manner.”

FOCUS OF THE HEARING:

The hearing will focus on a review of the President’s recent proposals designed to help long-term unemployed individuals return to work.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Please Note: Any person(s) and/or organization(s) wishing to submit for the hearing record must follow the appropriate link on the hearing page of the Committee website and complete the informational forms. From the Committee homepage, https://waysandmeans.house.gov, select “Hearings.”  Select the hearing for which you would like to submit, and click on the link entitled, “Click here to provide a submission for the record.”  Once you have followed the online instructions, submit all requested information. ATTACH your submission as a Word document, in compliance with the formatting requirements listed below, by the close of business on Thursday, October 20, 2011.  Finally, please note that due to the change in House mail policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings. For questions, or if you encounter technical problems, please call (202) 225-1721 or (202) 225-3625.

FORMATTING REQUIREMENTS:

The Committee relies on electronic submissions for printing the official hearing record.  As always, submissions will be included in the record according to the discretion of the Committee.  The Committee will not alter the content of your submission, but we reserve the right to format it according to our guidelines.  Any submission provided to the Committee by a witness, any supplementary materials submitted for the printed record, and any written comments in response to a request for written comments must conform to the guidelines listed below.  Any submission or supplementary item not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. All submissions and supplementary materials must be provided in Word format and MUST NOT exceed a total of 10 pages, including attachments. Witnesses and submitters are advised that the Committee relies on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased.  All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. All submissions must include a list of all clients, persons and/or organizations on whose behalf the witness appears.  A supplemental sheet must accompany each submission listing the name, company, address, telephone, and fax numbers of each witness.

The Committee seeks to make its facilities accessible to persons with disabilities.  If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested).  Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.

Note: All Committee advisories and news releases are available on the World Wide Web at http://www.waysandmeans.house.gov/.