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Senate OKs unemployment expansion
The state Senate on Wednesday voted to expand unemployment benefits to out-of-work Virginians, although the House of Delegates may still kill the plan.Gov. Tim Kaine (D) has 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.
If Virginia does not expand those eligibility rules, it will receive $62.5 million in federal stimulus funds for unemployment benefits.
“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.
Proponents of the plan maintain that the federal money will last for seven years but Midlothian Sen. John Watkins (R) said he believes the federal money will run out by 2010, leaving Virginia to pick up the cost.
“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.
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.
“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).
Nationwide rankings list Virginia low on unemployment benefits available.
The more conservative House of Delegates will likely reject the benefits when they take up the issue later in the day.
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