Thursday, April 09, 2009
Delegates reject expansion of jobless benefits
Gov. Tim Kaine made no effort to conceal his anger, calling the decision "a huge mistake."
General Assembly 2011
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RICHMOND -- The House of Delegates on Wednesday defeated Gov. Tim Kaine's proposal to expand Virginia's eligibility criteria for unemployment benefits, turning aside an opportunity to get $125 million in federal recovery funds designated for displaced workers.
By refusing to expand eligibility for unemployment, the state fails to qualify for its full share of federal funds contained in the economic recovery package that Congress passed in February. The Republican-controlled House defeated Kaine's proposal on a largely party line vote of 53-46, deciding the most divisive issue lawmakers confronted during their one-day veto session at the state Capitol.
Kaine made no effort to conceal his anger when a delegation of House and Senate members came to his ceremonial office in the Capitol on Wednesday night to inform him that they had completed their session.
"There are an awful lot of people who are hurting in Virginia," Kaine told the legislators. "And the message to them seems to be, just, 'We don't care; we don't care. Fend for yourselves.' "
Kaine told departing lawmakers that they made a "huge mistake" and said, "Fortunately it is one that can be corrected."
But Kaine later said he had no specific steps in mind for making the state eligible for the federal assistance.
The governor's proposal would have made unemployment benefits available for workers laid off from part-time jobs and seeking part-time work, and would extend benefits for workers who lost jobs in declining industries and have enrolled in retraining programs. Virginia has one of the nation's leanest unemployment insurance programs.
Kaine was particularly irked by comments that Del. William Fralin, R-Roanoke, made during the House floor debate on the bill. In arguing against Kaine's plan, Fralin said: "When are we going to tell the Congress of the United States that they don't set the policy of Virginia on a state-administered and a state-run program like unemployment insurance?"
Fralin, who is not seeking re-election, said the state should not allow the federal government to "hold us hostage over this money and tell us how we're going to spend it."
Fralin later got an earful from Kaine while sitting at the governor's conference table with a handful of legislators from the two houses.
"This was not about an ideological battle with some distant foe," said Kaine, the chairman of the Democratic National Committee. "This is about looking into the eyes of Virginians who have lost their jobs."
Fralin shrugged off Kaine's criticism after leaving the meeting, saying, "I think it was a little one-sided and I think it was a little partisan."
Republicans argued that Kaine's proposed expansion would be permanent and eventually increase unemployment insurance taxes on businesses, potentially slowing the state's economic recovery. State business organizations lobbied intensely to defeat Kaine's proposal, arguing that the federal funds came with too many strings attached. Employers already face the prospect of significant, automatic tax rate increases triggered by the depletion of the state's unemployment trust fund.
"They're going to dangle this money in front of us to tempt us to change some sound policies that have worked so well for this commonwealth for so many years," said Del. Kathy Byron, R-Campbell County, who argued against Kaine's proposal on the House floor.
Del. Danny Marshall, R-Danville, and Del. Don Merricks, R-Danville, were the only Republicans to support Kaine's proposal. Both represent districts with double-digit unemployment rates. Virginia's statewide unemployment rate is 7 percent.
Kaine attached the expanded eligibility criteria to Senate Bill 1495, sponsored by Sen. Mamie Locke, D-Hampton. Locke's original bill was designed to make unemployment benefits available to spouses of active duty military assigned to Virginia. The revised bill passed the Democrat-controlled Senate on a party line vote of 21-19.
House Minority Leader Ward Armstrong, D-Henry County, urged lawmakers to approve the expansion, saying the benefits would help displaced workers pay bills and help businesses in high unemployment areas.
"We're at a defining moment and a kind of a crossroads in this commonwealth, but this is not a fork in the road where you choose business on one side and employees on the other," Armstrong said.
Armstrong's district includes Martinsville, which has the state's highest unemployment rate at 20.2 percent. Kaine and his entire Cabinet are scheduled to spend today in Martinsville, a city that Kaine said has "been blasted by this economy."
Virginia's annual unemployment compensation tax rate of $98 per worker ranked 49th nationally last year. The governor's changes eventually would cost $18.1 million and increase annual employer taxes by an estimated $4.56 per worker, according to Kaine's administration. Kaine said the federal funding would delay rate increases that will be needed to keep the state's trust fund solvent.
Republican lawmakers said they took meaningful steps Wednesday to help unemployed workers. Both houses backed Kaine's plan to extend the unemployment benefits period by 13 weeks over the regular 26-week period and a 20-week extension already in place.
"I have a lot of people who are unemployed, and I feel we have made an effort to address that," said Del. Bill Carrico, R-Grayson County.
The unemployment debate was the most contentious issue of the daylong session in which lawmakers acted on bills that Kaine amended and vetoed.
The Senate sustained Kaine's vetoes of bills that would expand the number of crimes eligible for the death penalty and allow people with permits to have concealed handguns in restaurants that serve alcohol.
