Mass. job agencies may shed 70 staffers

Cuts might curtail unemployment help

With a recession looming, the Patrick administration might cut up to 70 jobs in state agencies that provide unemployment and job placement assistance to laid-off workers.

Administration officials say they are in the process of closing a $6 million shortfall in these programs, which they blame on federal funding that has declined by $15 million over the past five years. As a result, they have launched a voluntary layoff or buyout program, offering takers a $2,500 bonus. They are also considering eliminating walk-up services for people to file unemployment claims in state career centers, which help laid-off workers find jobs. Most people file unemployment claims by phone.

Suzanne Bump, secretary of Labor and Workforce Development, said no final decisions have been made on which services to cut. The state must collaborate with 16 regional Workforce Investment Boards, which, under federal law, oversee career centers and share responsibilities with the state for job training and other employment pro grams.

"These decisions will [not] and cannot be unilateral," Bump said. "But we've been in a situation of having to provide an ever more extensive support system with fewer dollars."

In a letter obtained by the Globe, the Workforce Investment Association of Massachusetts, which represents financial administrators of the federal Workforce Investment Act and career center directors, raised concerns to Bump that eliminating walk-up service would hurt those who speak little English, have little education, or just have difficulty navigating the automated phone system.

In many cases, the letter said, walk-up services have helped these clients solve problems that were holding up their unemployment benefits.

Last year, the state's 37 career centers served about 180,000 walk-up clients, according to the letter.

"This group of unemployed, who are the most vulnerable customers, will be the most negatively impacted by the removal of the walk-in claims services," the letter said. "They may also be the . . . applicants who are financially strapped and need assistance to access their funds ASAP."

Judy Selesnick, executive director of the Workforce Investment Association, said the state has been working closely with the regional workforce investment programs on closing the funding gap and considering various options. No decisions have been made, she said.

The cuts would come in the next fiscal year. The state expects to receive $58 million, the same as this year, but down from $68 million in 2005 and $73 million in 2003. In addition, Congress late last year cut $1 million to $2 million from other grants. Meanwhile, declining federal money over the years has led the state to deplete a reserve fund that had been used to support unemployment assistance and job training programs.

Bump said it's still unclear how many jobs will be cut, depending on which employees take the buyout and additional administrative savings. Tuesday is the deadline for taking the buyout, she said.

While it's never a good time to cut unemployment assistance programs, it's particularly worrisome to have to do it when a recession is looming, Bump said. Massachusetts, however, still has a low unemployment rate, which was 4.5 percent in January, compared with 4.9 percent nationally.

Extending unemployment benefits and providing additional funding to states were considered but ultimately left out during negotiations over the recently approved federal stimulus bill, which will send tax rebate checks to most US households. Bump said she is hoping the federal government will provide additional funding before cuts have to be made.

Senator Edward M. Kennedy, chairman of the Senate Health, Education, Labor and Pensions Committee, has proposed legislation to boost funding for unemployment benefits and programs.

"As the economy continues to worsen, we must take immediate action to jump-start the economy and to help families in crisis," he said in a statement. "I call on my colleagues to join me in helping the millions of hard-working Americans who are pounding the pavement every day looking for work, but having no luck. We need to take up legislation as soon as possible to extend and improve unemployment benefits."

Robert Gavin can be reached at rgavin@globe.com.