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House rejects expansion of unemployment benefits
The House of Delegates on Wednesday rejected a plan to expand unemployment benefits to out-of-work Virginians.Gov. Tim Kaine (D) had amended an unemployment bill to expand coverage by picking up $125 million in federal stimulus funding for the state.
Under changes to current unemployment-benefit rules, Virginians laid off from part-time jobs or participating in job- training programs would be eligible for the insurance for the first time.
“As we work to get our economy back on track, it's critical we provide Virginians with the temporary assistance they need to weather the storm," Kaine said before the start of Wednesday's veto session. "The commonwealth has the power -- and the obligation -- to make necessary changes to our laws that support displaced workers facing serious economic challenges."
The state senators ended up agreeing with the governor by a 21-19 vote but the House of Delegates rejected it, 46-53, so the benefit expansion will not happen.
Proponents of the plan maintained that the federal money would last for seven years. Once the federal money ran out, the General Assembly would have the option to put out state money to continue the benefits, or to just let them lapse. But Midlothian Sen. John Watkins (R) said he believes the federal money would run out by 2010, leaving Virginia to either pick up the cost or to take away unemployment money that laid-off workers had come to depend on.
“It is not going to last for six or seven years,” he said. “It is probably not going to last a year.”
Watkins also argued that expanding unemployment benefits will raise costs for already-struggling companies.
“It's another benefit that has to be paid out,” he said.
But Fairfax Sen. Dick Saslaw (D), the Senate's majority leader, countered that the expanded benefits will cost each employer only $4.50 per employee per year.
“That is hardly going to disrupt his financial future,” he said.
Lynchburg Sen. Stephen Newman (R) also took issue with a portion of the bill that would have allowed some workers to pick up benefits even if they turn down a full-time job because they are only seeking part-time work.
“There's a great concern out there that it could set up an opportunity to game the system,” he said.
But a number of Democrats argued that single parents or people who are caring for elderly relatives may only be able to accept part-time work and should not be penalized for trying to find work while also caring for their families.
Others said the simple fact is that if the bill passed, Virginia would get $125 million. If not, the money will go to another state and Virginia workers will just miss out.
“I would find it unconscionable to turn down 125 million that can circulate through our economy and could help people who need it now.” said Arlington Sen. Mary Margaret Whipple (D).
Statewide, the unemployment rate is at 7 percent, up from 6.4 percent in January. While Northern Virginia is seeing unemployment at 5.2 percent (Loudoun 4.8 percent), parts of southwest Virginia are experiencing double-digit rates of as much as 20 percent, according to the Virginia Employment Commission.
Nationwide rankings list Virginia low on unemployment benefits available.
The delegates' rejection of the bill is the end of the line for benefit expansion this year.
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