Governor Rell Announces Connecticut To Receive

$58.6 Million in Stimulus Funds for Unemployed

Funds Will Boost Unemployment Trust Fund

Governor M. Jodi Rell today announced that Connecticut is receiving more than $58 million in federal stimulus funds to help pay for unemployment benefits for thousands of residents who have lost their jobs during the current recession.

“Until this economy begins to strengthen, we must support our unemployed residents and this federal payment will help us to bolster the state’s unemployment fund,” Governor Rell said. “Thousands of families have lost a paycheck over the past year and these unemployment benefits are essential for their economic stability.”

In the past year, more than 65,000 jobs have been lost in Connecticut, sending the unemployment rate to 7.9 percent, one point below the national rate and the highest since 1977.

The Governor said Connecticut qualified for the funds under the American Recovery and Reinvestment Act of 2009 (ARRA) by enacting legislation that allows a worker to qualify for unemployment benefits if he or she left a job to relocate to a spouse’s new place of employment.

Under the ARRA, Connecticut was eligible to receive a total of $87 million for the state’s Unemployment Trust Fund. This past April, the state received a third of these federal funds – $29.3 million – and was notified that Connecticut could qualify for the additional $58.6 million by enacting the “trailing spouse” provision. The Governor said the state has now been notified by the U.S. Employment and Training Administration that the $58.6 million will be transferred into the state’s Unemployment Trust Fund.

In recent months, Connecticut has been issuing more than $100 million a month in unemployment benefits. According to the Connecticut Department of Labor, nearly 150,000 residents are unemployed and the number of first-time filers for jobless benefits has increased by approximately 45 percent over this time last year.

“Although Connecticut’s unemployment rate is still lower than the national rate, the challenges that face our residents as they seek new employment are very real,” Governor Rell said. “These funds will provide a welcome boost to our state’s unemployment fund, and more importantly, to those who are struggling to support their families while looking for work.”

For more information on the ARRA funding and programs in Connecticut visit the state’s official stimulus Web site at www.ct.gov and click on the CT Recovery link.