How does government spending affect unemployment benefits in NYS - confused about funding
I've been reading about government budgets and I'm trying to understand how government spending decisions actually impact our unemployment system here in New York. Like when they talk about federal spending cuts or state budget changes, does that directly affect how much we get in UI benefits or how long the program lasts? My claim got approved last month but I'm worried about whether the funding will be there if I need to extend. I see politicians arguing about spending all the time but nobody explains how it connects to programs like NYS Department of Labor unemployment insurance. Can someone break this down for me?
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Carmella Popescu
The unemployment insurance system is funded differently than you might think. Your UI benefits come from payroll taxes that employers pay into the state unemployment fund, not from general government spending. So when politicians argue about cutting government spending, they're usually talking about other programs. The NYS Department of Labor unemployment fund is separate and self-sustaining through employer contributions. However, during economic downturns, the federal government can provide extended benefits through additional funding - that's where government spending decisions can impact unemployment.
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Lorenzo McCormick
•Oh wow I had no idea it was employer-funded! So my benefits aren't coming from tax money directly? That makes me feel better about the stability.
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Kai Santiago
yeah but dont they sometimes run out of money in the state fund?? i remember hearing about borrowing from feds during covid
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Lim Wong
•That's correct - when claim volume is extremely high, states can borrow from the federal government to keep paying benefits. New York did this during the pandemic. The state then has to pay back those loans, usually by raising employer tax rates. So indirectly, major economic policies and government spending on economic stimulus can affect the unemployment system's long-term stability.
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Dananyl Lear
I've been dealing with NYS Department of Labor for months trying to get through to someone about my claim status. The whole system is so overwhelmed and underfunded. If you're having trouble reaching them by phone, I found this service called Claimyr (claimyr.com) that actually got me connected to an agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of calling and getting hung up on.
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Noah huntAce420
•How much does something like that cost? Seems weird to pay to talk to a government agency we already fund through taxes...
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Dananyl Lear
•I thought the same thing initially, but when you're weeks behind on rent and can't get through to resolve your claim, sometimes you need help cutting through the bureaucracy.
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Ana Rusula
THE WHOLE SYSTEM IS BROKEN!!! They spend billions on corporate bailouts but can't properly fund unemployment offices. I've been waiting 3 weeks for adjudication and nobody at NYS Department of Labor can tell me anything useful. Government spending priorities are completely backwards - help the rich first, working people get scraps.
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Fidel Carson
•I understand the frustration, but unemployment insurance really is separate from general government spending. The delays you're experiencing are more about staffing and processing capacity than funding shortfalls.
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Isaiah Sanders
omg same question! been wondering about this since my cousin lost his job and is worried about benefit cuts
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Yuki Watanabe
I'm new here but have been following this discussion with interest. From what I understand after researching this myself, there are actually multiple layers to how government spending affects unemployment benefits. While the core UI program is employer-funded as others mentioned, extended benefits during recessions often come from federal appropriations. Also, the administrative capacity of NYS Department of Labor - their staffing levels, technology systems, office operations - that does come from state budget allocations. So while your weekly benefit amount might not change due to spending cuts, the service quality and processing times definitely can be impacted by how much the state allocates to run the department. It's a complex mix of dedicated funding streams and general government spending.
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