BEREA, Ky. - The state's safety net for jobless workers could reel in more federal bucks for the cause, but only if Kentucky modernizes its unemployment insurance system before an August deadline. A report by the newly-formed Kentucky Center for Economic Policy (KCEP) finds the state will forfeit a $90 million federal incentive, unless it updates eligibility rules for unemployment.

Center Director Jason Bailey says 38 other states have already accessed at least part of their federal Recovery Act money by updating their systems to better reflect today's labor market.

"This is an opportunity to access much-needed money at a time of high unemployment, and to also assure that workers whose employers are now paying into the system but can't access benefits are able to do so."

Kentucky's jobless rate is at 10.3 percent, the eighth-highest in the nation, and the state has borrowed close to a billion dollars from the federal government to shore up the unemployment insurance trust fund. Last year, Kentucky passed legislation to make the fund whole over time without raising unemployment taxes on businesses. But, so far, policymakers have not presented a plan to modernize the system's eligibility rules.

According to the report, many other states that borrowed federal money modernized their unemployment insurance programs at the same time. Bailey says the updates make the system align better with many workers' new realities.

"Those include part-time work, high-turnover jobs, situations where people are having to leave their job because they have a spouse that moves or they have a sick family member, or they're a victim of domestic violence."

Bailey calls the state's existing eligibility system a relic from a bygone era of paper processing and significant delays. The result, he says, is a rejection of those most in need of jobless benefits.

"A lot of workers, particularly those who are in high-turnover jobs - and those tend to be low-wage workers - don't qualify for that reason."

Bailey says only one in four out-of-work Kentuckians collects state jobless benefits, ranking Kentucky near the bottom of states that financially assist the unemployed.

The KCEP report is online at www.kypolicy.org




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Traditional business lending is tight these days following a series of recent bank collapses but one program is helping small businesses grow, focusing primarily on women or people of color.

The ICA Fund offers a 12-week program called "The Accelerator at ICA" which focuses on strategy for growth, personnel, capital, and investment readiness.

Youngwon Lee, founder and CEO of Dokkaebier, an Asian-inspired craft brewery in Oakland, started the business in 2020 and now employs 20 people.

"It is very difficult for us to get opportunities or advice or help as a minority-owned startup," Lee acknowledged. "It's a great opportunity. They connect us with advisers, and actually give us a real-life practical advice and then walk you through the system to be more ready to grow, as well as take investment."

Once participants complete the program, they are eligible for seed money. Last year the ICA Fund served 117 Bay Area businesses, investing $2.4 million into 18 companies. The ICA Fund's business accelerator accepts applications four times a year and the next one is open now.

Allison Kelly, CEO of the ICA Fund, said participants join a cohort of peers and receive one-on-one mentoring with a series of high-caliber advisers.

"For entrepreneurs of color and women entrepreneurs especially, having a trusted network and a peer group helps build confidence, which is a big driver in business success," Kelly explained.

The program is funded by philanthropy and by the federal government. It is one of 10 nonprofit venture capital Certified Development Financial Institutions in the U.S., and the only one in California.


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Minnesota legislators adopted a lot of major policies in this year's session, including actions to support workers in many different fields. State employees are cheering the provisions.

A new statewide paid-leave program is among the highlights as Democrats pushed through a range of proposals with their majorities.

The Minnesota Association of Professional Employees, which represents 15,000 state workers, was a key supporter of the paid-leave plan. Its president, Megan Dayton, said there were other victories, too. Collectively, she said, she feels they'll establish a new era for the state's workforce.

"It's a historic investment," she said. "It's also a breath of fresh air with programs and policies that, in my opinion, echo the spirit of FDR's New Deal."

According to MAPE, pension changes are a big win for its members, including a one-time 2.5% cost-of-living adjustment for retirees. Advocates were also able to secure back pay for state workers in the event of a future government shutdown.

Republicans and some business groups have criticized some of the plans, namely the paid-leave program, set to begin in 2026. The National Federation of Independent Business in Minnesota described it as "complex employment regulations and severe penalties that will create more headaches for Main Street."

However, Dayton said whether it's paid leave or the other policies signed into law, Minnesota is in a better position to attract workers, including state government.

"Recruitment and retention is a really difficult piece of the workforce for everybody right now," she said, "and we think that many of the provisions made through this legislative session will contribute to making the state of Minnesota an employer of choice."

As for other workplace changes, the Legislature broadened protections for nursing mothers and pregnant employees. That includes allowing for a pregnant worker to take longer restroom, food and water breaks as an accommodation without being required to provide documentation.

Lawmakers guaranteed more than $760 million in their budget to boost wages and benefits for home care service providers.

That means Washington state caregivers will get wage increases of at least 10%. Veronica Tausili is a caregiver for her mother who traveled Olympia with her union - the Service Employees International Union 775 - to push for the wage increases.

She said experienced at-home caregivers will earn more than $25 an hour by the end of their contract and, importantly, caregiver wages will start at $21 an hour - helping recruit and retain them.

"We've lost so many caregivers because of the fact that they can't afford to stay in that position and not get paid," said Tausili. "So this is going to help us with the hiring process and getting people in because we're in dire need of caregivers right now."

The budget funding covers health-care coverage for caregivers' children as well. The Washington state budget also includes a rate increase for nursing homes of nearly $300 million over the next two years.

Tausili said this is critical for addressing understaffing in nursing homes.

Tausili quit her job to take care of her mom when she found out her mom had stage four cancer, which she survived - but Tausili continues to take care of her around the clock.

While some might see this kind of care as a burden, Tausili disagreed.

"This is my life as a caregiver and I love the fact that I can be there with her through everything," said Tausili. "I can say I was with her and I held her hand through everything."

Tausili praised state Rep. Cyndy Jacobsen - R- Puyallup - whom Tausili met with during the session, for her work on this issue. Gov. Jay Inslee signed the budget last week.




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