JUNEAU -- Layoffs for 10,000 Alaska state workers, as could happen if legislative budget negotiators remain stymied, may not provide all the cost savings hoped for if those workers keep collecting government checks.
Those checks would be unemployment benefits, and the state's Employment Security Division is expecting up to that number of claims to be filed if the Legislature is unable to pass a budget and a partial government shutdown happens on July 1.
The division is now bracing for an influx of filings, said Patsy Westcott, deputy director who oversees unemployment insurance.
"That would mean 10,000 all wanting to file a new claim," she said. "We've never seen a workload like that before."
Alaska's seasonal economy means fluctuation in claims is routine -- as summer tourist and construction seasons end, or in retail following the holidays. But a surge of 10,000 claims would be unprecedented, she said.
"It will be challenging, and we will rise to the challenge," she said. But the division in a recent week paid 4,600 checks for unemployment benefits, meaning it could see that number triple from the summertime low.
A recent high in claims payments was Jan. 6, she said, when 15,211 checks were issued. But those, she said, had seen their initial filings processed over the previous three months, not all at once.
"Assuming that every individual files a new claim for benefits, that's a significant influx of new claims all in one week," she said.
But what's noteworthy for state budget writers is how those claims would get paid. While businesses pay an unemployment tax rate into the Unemployment Insurance Trust Fund, the state of Alaska and some other employers are what's known as "reimbursable" employers.
That means they don't pay ahead, and that whatever the division pays out in unemployment insurance benefits for laid-off state employees will be billed directly to the state treasury.
"If a former state employee is paid, the state would just receive a direct bill for the benefits that were paid out to that individual," Westcott said.
The state's private employers, known as "contributory employers," pay quarterly into the trust fund so that in the event of layoffs, even with a bankrupt employer, there's money available to pay unemployment benefits.
Typically, state and other governments can be reimbursable employers as they are considered to be among the most steady of employers. Governments rarely go out of business, and only rarely have much in the way of layoffs.
"As an employer, the state has a very stable payroll from quarter to quarter," Westcott said.
So how much might laid-off workers collect? In some cases, not that much. Unemployment insurance benefits are linked to pay rates but have minimum and maximum amounts written into state law.
The minimum amount is $56 per week, with the maximum of $370 per week, Westcott said.
The maximum amount kicks in at about $42,000 annual pay, she said.
"I'd suspect that most state employees would wind up qualifying for a higher weekly benefit amount," she said.
In addition, those claiming benefits can get an extra $24 per week if they have dependents, or up to a maximum of $72 additional per week if they have three dependents.
Westcott said it would be difficult to predict how much the state could wind up paying employees not to work in the event of a shutdown.
Last year the state's 18,000 registered employers saw layoffs of 56,000 people and paid out a total of $185 million in unemployment benefits for varying periods of employment.
But Westcott said it is difficult to know how many workers might file claims in the event of a shutdown. That process, with the availability of online claims filing, is easier than ever, but some eligible laid-off workers don't file claims, she said.
Online filing will help the division process an influx of claims, Westcott said.
Those who do claim benefits will have to seek work through the Alaska Labor Exchange System, post a resume on the system, and actively search for work and report those searches to remain eligible.
A qualifying week of filing and jobs search is required before benefits begin to be paid, she said.
Some employees are already contacting the division about beginning the process.
Those who may seek other work may find little available, even with employment high during the summer.
Juneau last month reported a 5 percent unemployment rate, among the state's lowest, and also showed 859 people looking for work. But the government-reliant town has about 3,400 state executive branch employees. Some in the executive branch, such as Department of Corrections employees at Lemon Creek Prison, have funded budgets and are not subject to the possible layoffs.
In addition, other branches of government, such as the Legislature and judiciary, are not facing layoffs.
In Anchorage, the unemployment rate was 5.3 percent in April, with about 8,500 people looking for work. There are about 6,000 state employees in Anchorage.