Kentucky Capitol Building

Kentucky Capitol Building in Frankfort, Ky.. March 30, 2022. (WDRB Photo)

LOUISVILLE, Ky. (WDRB) -- Changes to Kentucky's unemployment system start Sunday, with benefits being cut nearly in half.

Since its creation in 1938, Kentucky unemployment insurance was available for up to 26 weeks — or half a year.

"This is a system that's kind of been the way it is for decades now," said Charles Aull, executive director for the Kentucky Chamber of Commerce's Center for Policy and Research. "Things have to change."

Beginning Jan. 1, the amount of time available will vary using a new formula created by lawmakers this spring. It is based on the state's unemployment rate from months prior.

A lower unemployment rate will result in a shorter time unemployment benefits are available. The new range will be a maximum between 12 and 24 weeks.

In January, up to 12 weeks will be available. That's less than half of what it was before. 

Along with the new formula are additional work search requirements, which include a minimum of submitting three job applications a week.

The state is also offering a new re-training and education option to its unemployment benefits. Aull said if someone seeks those out they could get up to an additional five more weeks.

For more about the changes and to look at resources, click here to be redirected to a guide from the Kentucky Career Center.

The bill text is available online here.

The state's unemployment insurance portal can be accessed here.

Also starting Sunday, Kentuckians will see sales tax on more than 30 new goods and services. Although residents will pay less income tax in 2023, many things are now included in the current 6% sales tax to offset that loss in state revenue.

For more about those changes, and a list of goods and services that now come with a 6% sales tax, click here.

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