The Unemployment Insurance Advisory Council testified at the Wisconsin Assembly Committee on Labor in favor of AB 610 in a 8-0 council vote to extend unemployment benefits Tuesday. The bill is scheduled to come up for a vote Thursday and is expected to pass unanimously.
The Senate passed the same bill yesterday by a 33-0 vote.
President George Bush’s economic stimulus package, currently in Congress, would provide additional money for unemployed insurance benefits and help increase the duration of coverage by 13 weeks, from the current 26 weeks to 39 weeks.
Bruce Hagen, a member of the council, said the bill is intended to send a signal to Washington in support of federal aid.
“This bill places Congress on notice that the Wisconsin legislature is encouraging federal legislation to extend unemployment benefits,” Hagen said. “Should Congress not act by the close of this year, the Unemployment Insurance Advisory Council will convene in January to make a recommendation to the legislature with regards to what action is deemed fit.”
If Congress fails to grant extended unemployment benefits before year’s end, the council will have until Jan. 31 to recommend future steps the state should take.
Hagen said the council is also concerned Congress is focusing on specific industries, such as the airline industry. He said since all areas of the economy have been affected, the government must provide relief for everyone.
“We want Congress to act for all states to be covered because we have all had respective downturns in the economy,” Hagen said. “If they fail to do that, it would be incumbent upon our council to meet and make a recommendation with regard to that issue.”
Hagen said Wisconsin is receiving an average of 13,000 unemployment claims a week, up 7,000 over the normal level.
Labor Committee Chair Rep. Jean Hundertmark, R-Clintonville, said Wisconsin would benefit from the federal funds if they were approved and assured the committee the bill would have no effect on employers within the state.
“If and when Congress acts, it does bring that federal money home to us,” Hundertmark said. “At this point, the bill does not raise any employer rates; it simply asks to council to make a recommendation.”
Sen. Robert Jauch, D-Poplar, also testified in support of extending unemployment benefits.
“Since the Sept. 11 turmoil, workers around the state and the nation are more frequently finding themselves without unemployment compensation,” Jauch said. “It is imperative Wisconsin act quickly to put ourselves in a position for workers to know that the state is going to be on their side in providing economic help until they can get their feet back on the ground.”
He said the measure is necessary to allow more unemployed in the state to collect compensation.
“Under the existing unemployment compensation threshold targeted trigger mechanism, literally tens of thousands of Wisconsin families would have to be pushed off the edge before new families could qualify for economic assistance,” Jauch said.
However, Jauch said Wisconsin must be prepared to provide aid for the unemployed if the federal government fails to act quickly.
“I’m very doubtful that you will see a compensation package passed by the Congress this year,” he said. “I have no doubt that if the federal government doesn’t act, that Wisconsin is going to move forward to extend benefits.”
