(AP) – Wisconsin is becoming the latest state to expand its unemployment insurance program to qualify for more federal economic stimulus money despite some questions about the long-term impact.
Both houses of the Democratic-controlled Legislature voted overwhelmingly Wednesday to allow those who quit their jobs to relocate with a spouse, care for ill relatives or because of domestic violence to qualify for unemployment benefits for the first time. Also, workers in some training programs will receive up to 26 additional weeks of benefits.
The changes, expected to be signed into law by Democratic Gov. Jim Doyle, are needed for Wisconsin to get $89.3 million in federal economic stimulus funding. The $787 billion spending bill requires states to modernize their unemployment programs to qualify for a share of $7 billion in unemployment aid.
Wisconsin and 13 other states have now made some or all the changes to their unemployment programs needed to qualify for the money, according to the National Employment Law Project, an advocacy group for low-wage workers. Several other states are expected to follow suit.
Some Republican governors and legislators, including in Louisiana, Florida and Texas, have turned down the federal aid or threatened to do so rather than make the changes. They warn the expansion will last long after the federal money runs out, which could lead to increases in the taxes employers pay into the program.
Wisconsin Democrats brushed aside such concerns on Wednesday, saying the time to help the jobless was now. The state’s unemployment rate has shot up to 9.4 percent, the highest level in 26 years.
“Today’s action will provide some relief to families fighting to scrape by and get through the worst economic times we have seen since the Great Depression,” said Assembly Speaker Mike Sheridan, a Democrat whose district has been devastated by the closure of a General Motors plant in Janesville.
Rep. Mark Pocan, D-Madison, said lawmakers could respond to any negative consequences later if necessary. The changes are expected to benefit an estimated 3,000 Wisconsin workers every year and cost $11.3 million.
Rep. Dean Kaufert, R-Neenah, said the state’s unemployment fund was already short on cash and expanding the program would be unwise in the long run.
“There is a consequence to taking these federal dollars,” he said.
The plan was approved with bipartisan support on a 87-11 vote in the Assembly and a 25-8 vote in the Senate. The changes had been recommended by a group of labor and business leaders who advise lawmakers on unemployment policy.
Supporters of the expansion say they will help women who leave jobs over family concerns and laid off workers learning new skills.
The bill also allows Wisconsin to accept $141 million in stimulus money to help low-income households become more energy efficient, $143 million for water infrastructure projects and $19 million for criminal justice programs. It also qualifies workers let go from businesses with fewer than 20 employees for federal subsidies to keep their health insurance for nine months.
