Alabama lawmakers crunching numbers on expanded unemployment benefits

BALDWIN COUNTY, Ala. (WPMI) — President Donald Trump's new executive order calls on states to provide 25% of the expanded unemployment benefit. Some states are facing significant budget shortfalls because of the coronavirus pandemic.

After further review, Alabama lawmakers say the money is simply not there.

"The estimates I've seen, $350 to $400 million is what additional monies would have to be paid out. We only have right now around $200 million left in the regular unemployment insurance plan. We don't have the money for it," said Greg Albritton of Atmore who represents Mobile and Baldwin County.

The state of Alabama will pay you $275 a week in unemployment. President Trump's executive order calls for an additional $400 per week. Under the order, the federal government would pay $300 of that and the state would pay the remaining $100.

Senator Albritton is also the Senate chair on the state's General Fund Budget Committee.

"If asked now to make those payments, there would be no source for it to come from without prorating some other agency or some other program. I’m unwilling to do that," said Albritton.

Representative Steve Clouse is the House chair on the General Fund Budget Committee. He says at first glance the match could cost Alabama $85 million per month, in addition to what it normally pays in unemployment benefits.

"The funds, we just don’t have that amount in the fund left. And plus, having to pay our share of $275 a week, we would be depleted pretty fast," said Clouse.

Clouse says it's possible Alabama could afford to take on the extra $100 per week if federal Cares Act money can be used.

“We probably could for a couple months, but it would be hard to do it until the end of the year,” said Clouse.

It's a glimmer of hope, maybe, if federal CARES Act money is available and Governor Kay Ivey agrees to use it to pay the state's portion of the expanded unemployment benefit. Gov. Ivey’s office says she is exploring her options.

The president also said some states may not have to pay given their financial situations, but no details about the extra federal help have been released.