The Badger Herald: News: State considers benefits increase

News

State considers benefits increase

Doyle may make unemployment available to more residents, receive more stimulus

Looking for a print version?
Simply use your browser’s ‘Print’ command and a printer-friendly document will be generated automatically.

Also by Rachel Vesco:

Doyle meets privately with mayors (May 7, 2009)
Public debates possible state smoking ban (May 6, 2009)
Doyle, governors meet to talk region's wind power (May 6, 2009)
Poverty increases as economy suffers (May 5, 2009)
Committee OKs county RTA, film incentive change (May 1, 2009)

By Rachel Vesco
Thursday, February 26, 2009 12:29 a.m.

2 Vote 0 Votes

Wisconsin could receive a total of $89 million from the federal stimulus package if the state expands the requirements for unemployment benefits.

Without the expanded requirements, the state will receive $45 million from the package, according to Dick Jones, Workforce Development spokesperson.

However, the possible benefit increase has received criticism from Republican lawmakers who are concerned about the health of Wisconsin’s unemployment fund. The state was already forced to take out a $400 million interest free line of credit from the federal government to help pay out benefits to the increasing number of out of work citizens.

According to Jones, 21,600 new unemployment claims were filed last week, with over 170,000 people already receiving benefits.

Rep. Robin Vos, R-Racine, said he was still looking at the proposal, but he did not think the state could currently afford it.

“Would I love to have the extra money in Wisconsin? Of course I would,” Vos said. “But is it worth changing the law permanently so we have to increase taxes on businesses later? Probably not.”

Republican Party of Wisconsin spokesperson Kirsten Kukowski expressed similar concerns.

Kukowski cited examples of Republican governors around the nation who were refusing the money out of fear of future consequences.

“Expanding eligibility requirements is one thing, but it is a concern if we have to keep them that way when the federal money runs out,” Kukowski said in an e-mail. “This is exactly why you’ve heard [Republican] governors say they will refuse the money — because it leaves their state worse off down the road.”

Despite the criticism, Jones and state Democrats are confident the expansion of the benefits would benefit the state rather than harm it.

“These changes would improve and strengthen the program, and better reflect today’s changing workforce that may lose their job through no fault of their own,” Jones said. “By providing this help we … and ensure these skilled workers stay in the state when the recovery takes hold.”

Although Jones advocated for the benefits, he acknowledge the state would not know exactly how many citizens would benefit from the expansion of the benefits until estimates from the Department of Labor are finalized.

Assembly Majority Leader, Tom Nelson, D-Kaukauna, said he was still reviewing the details, but added he thought it was an opportunity the state should consider.

Assembly Speaker Mike Sheridan, D-Janesville, also expressed interest in the program, according his spokesperson, Rebekah Sweeney.

“With jobless numbers at a 22-year high and the nation facing the worst economic climate in generations, we must maximize unemployment benefits so Wisconsin families can weather these difficult economic storms,” Sweeney said. “The federal modernization guidelines put forth by the Obama Administration … will help thousands of Wisconsinites make ends meet while continuing to look for work.”

The plan to expand the unemployment benefits is currently under consideration by the state Unemployment Insurance Advisory Council, Jones said.

The council will hold a meeting today where it will receive input from labor and business representatives before deciding on a course of action.

2 Comments | Leave a comment

Anonymous | February 26, 2009 1:01 PM | Reply

I do not think it’s a good idea to expand unemployment benefits. People aren’t going to just pack up and move to another state to collect bigger unemployment checks, Mr. Jones. Too many people have taken advantage of this system for too long. It’s unfortunate that people are losing their jobs at an alarming rate right now, but the whole country is in the same boat. A test such as this one can only make all of us stronger in the end, even though some have to endure more than others. We are forced to be smarter with our investments (the state included) and may have to acquire new job skills in order to make ourselves more resilient to future failure.
It would be OK to TEMPORARILY increase benefits for these circumstances, but we all know this would never happen. In the long run, it just means taxpayers would have to shell out more money.

Anonymous | March 2, 2009 2:16 AM | Reply

I have to say I agree and disagree. I have been working 32 years and this is the first time I have ever needed to collect unemployment. I believe I deserve as much as I can get with the shape of the economy. I recently wanted to refinance my home. I have owned 3 homes, selling each to upgrade and never have I been late on a payment and have refinanced several times cutting years off of the loans and interest rates. Now because I am laid off I am not eligible to refinance. If I were a seasonal worker it would be ok. That`s just not right as seasonal workers do not always work the same every year. It would lower my payment to make it easier to survive. That little extra would make a lot of difference when money is tight.