Cut in dependent allowances delayed

NASHVILLE — Tennesseans facing a cut in their unemployment benefits are getting a reprieve, thanks to the federal government.

The elimination of dependent allowances of up to $50 a week was supposed to take effect July 1 with the enactment of the state law.

Jeff Hentschel, a spokesman for the state Department of Labor and Workforce Development, told The Tennessean newspaper that the cuts did not take effect because federal officials warned the action could cause a loss of federal funding for other benefits.

Hentschel did not immediately return a call to The Associated Press on Tuesday.

The legislation’s main sponsor, Sen. Jack Johnson, said his office is talking with state officials to get details about why there’s a delay in implementing the reduction because he thought the measure had federal clearance.

Hentschel told the newspaper that federal officials initially told the state the benefits could be eliminated, but reversed that decision last week and warned the cut could jeopardize other federally funded benefits.

Under the program, those collecting unemployment can receive an additional $15 per child up to a $50 maximum each week.

According to the department’s projections, ending the allowance in the budget year that began July 1 would save the state $40 million per year.

Lawmakers created the child allowance in 2009 in order to qualify for a nearly $142 million federal stimulus grant. Now that that money had been spent, the Republican-controlled legislature earlier this year passed a bill to end the program. It was approved 6623 in the House and 24-5 in the Senate.

Johnson acknowledged there’s also the possibility of violating the law since the governor signed it and it was technically enacted on July 1, but there’s now been a delay.