Panel OKs unemployment stimulus bill
TALLAHASSEE (AP) – A bill that would allow Florida to get an additional $444 million in federal stimulus money for jobless workers cleared its first hurdle Tuesday, but its outlook remained bleak in the Republican-controlled Legislature.
That’s because House GOP leaders are cool to the legislation that won approval from a Senate committee. It’s also strongly opposed by business groups, including the National Federation of Independent Business, Florida Chamber of Commerce and Associated Industries of Florida.
They argue it’ll permanently expand benefits, resulting in higher taxes that employers pay into the unemployment compensation system.
“It’s not in our budget,” said House Majority Leader Adam Hasner, R-Delray Beach. “It’s an unfunded mandate from the Obama administration.”
Even without the legislation, Florida is in line for nearly $2.2 billion in stimulus money for unemployment compensation.
Supporters, though, say the additional federal money will reduce a tax increase employers are facing – without or without the stimulus – because the compensation system is running out of money due to Florida’s high 9.4 percent jobless rate.
“All we’re trying to do is get money that is sitting in Washington down to Floridians,” said Sen. Tony Hill, the sponsor. “We have a tremendous opportunity to bring relief to thousands of unemployed Floridians and boost our economy.”
The Senate Commerce Committee then voted 8-2 for Hill’s bill (SB 516). It has three more Senate committee stops, though, and a similar measure (HB 1333) has yet to move in the House.
The legislation would modernize Florida’s unemployment compensation system that Hill, D-Jacksonville, called “antiquated.” One provision would count an applicant’s most recent job history, which is now ignored, and make about 40,000 more unemployed workers eligible for compensation, Hill said.
Andrew Stettner, deputy director of the National Unemployment Law Project, a New York-based group that advocates for workers’ rights, said there’s a misconception states will be locked into expanded unemployment benefits when the federal money runs out.
The U.S. Department of Labor, though, has said when those dollars begin running out states can repeal their modernization laws and still keep the stimulus money, Stettner said. The Legislature, though, cannot put a “sunset” provision into legislation that would automatically repeal it.
Hasner, though, insisted the federal government not permit a repeal under any circumstances.