Nearly 1,300 people on emergency federal unemployment in Buncombe County will stop getting a check at the end of the month.
That’s because North Carolina is refusing to accept extra benefits as part of legislation aimed at shoring up the unemployment system.
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Actually what happened was that NC reduced its State benefit period from 26 to 20 weeks. Federal regulations require a state to have a STATE funded 26 week period. Thus, NC and its residents were no longer eligible for EXTENDED federal benefits.
BUT… This action was taken because NC owes the Federal government over $2.5 BILLION (+ interest) for money it has “borrowed” to fund unemployment benefits.
Soon Federal unemployment tax rates for NC businesses would skyrocket. Making NC a less desirable place for doing business. The new legislation helps stop the bleeding and pay some of the money back.
Like most issues this one is rather complex. All details are available online.