RICHMOND
Gov. Timothy M. Kaine said Thursday it is likely he will seek to expand unemployment insurance coverage so Virginia can receive $125 million in federal stimulus money, a move strongly opposed by many Republican lawmakers and business interests.
Kaine, a Democrat, said he is inclined to ask the General Assembly next month to approve legislation that would provide benefits to idled part-time workers who do not want to seek full-time jobs and extend the time unemployment benefits are available to those taking retraining classes.
The new benefits would cost $18.1 million a year, Kaine said, a fraction of the federal windfall Virginia would receive. The remainder of the money would help refurbish the state's unemployment trust fund, which is deeply stressed by increasing claims.
Several business groups, including the Virginia Chamber of Commerce, have been lobbying against the expansion, saying the programs eventually would require employers to pay higher taxes and undercut their ability to create jobs. This position is backed by Speaker Bill Howell, who leads the Republican majority in the House of Delegates.
Kaine countered those claims during his monthly radio show on WRVA in Richmond, saying the impact on businesses would be modest. Companies pay unemployment taxes that vary based on their layoff histories and their length of time in business.
The stimulus money would come in over two years. During that period, it would support the expanded benefits. After that, Virginia businesses would pay an annual average of $6.92 per employee to keep the new offerings, Kaine said.
"People are hurting right now; people have needs," he said.
The governor probably will put the matter before lawmakers on April 8, when the General Assembly is scheduled to review Kaine's amendments and vetoes of bills that were approved this winter.
Shortly after Kaine's radio show, the National Federation of Independent Businesses issued a statement urging lawmakers to reject the unemployment money, which is part of President Barack Obama's national stimulus plan.
"It's hard to argue against taking money that would help people in need, but taking
the money now would hurt us later," said Julia Ciarlo Hammond, director of the state NFIB.
Hammond lamented the possibility of a future tax increase on businesses.
"That's not going to stimulate the economy," she said. "It's going to depress the economy. It's going to make it harder for small businesses, especially, not only to expand and create jobs, but to keep the employees they already have."
Kaine noted that the General Assembly could rescind the new benefits in two years when the stimulus runs out. But opponents of the plan say lawmakers would lack the gumption to end the programs once they were under way.
"Our jobless benefits system is an insurance program, not an entitlement program," said Del. Sam Nixon, R-Chesterfield, a leading opponent of expanding benefits.
Kaine is Obama's hand-picked chairman of the Democratic National Party.
The governor denied that his position with the party has influenced his thinking on the stimulus money.
"I'm the governor," he said. "The DNC world doesn't have anything to do with how I resolve these questions."
Warren Fiske, (804) 697-1565, warren.fiske@pilotonline.com
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if you need facts beyond
if you need facts beyond what is reported in this very paper then you are hiding from the truth. My money say's the paper is such a big supporter of him because they are most likely to need the benefits.
2cents
"The only ones benefiting out of this are those that don't pay any taxes in the first place and government hacks and shills."
Can you back that up with facts?
Backing
Backing these increase under the guise that people will continue to spend. The only thing people out work are spending on is their mortgage/rent, gas for their car, and basic food and household utilities. The maximum that unemployment pays in VA is about $1,200 per month.....people aren't flocking to Nordstroms and Lynnhaven Mall on this glorious bounty. This stimulas package is nothing but a government to government give away program and the only folks who have any faith in it working are those that believe that government knows best and individuals aren't capable of making decisions for their own localities or lives. The only ones benefiting out of this are those that don't pay any taxes in the first place and government hacks and shills.
Mike Barrett
Mike, the problem is that government, whether Federal, State or Local, is quick to adopt measures like this but rarely do they ever retract them. Once the stimulus money (most of which is not really "stimulus", but spending on pet social issues) dries up, politicians will be reluctant to take away that benefit because there will always be someone in "need".
Payroll tax withholding was started during WWII as a "temporary" measures to fund the war. The pols swore up and down that it would be stopped once the war ended. That is just one example. There are many others where a government program was supposed to be temporary and remains today.
The problem with Kaine and more so, Obama, is that they are trying to dupe Americans into believing that Universal health care (term not used but legislation is moving that way), expansion of ACORN, expansion of planned parenthood etc etc etc are ways to "stimulate" the economy. We cannot bail out everyone and their brother and foist trillions in social spending on our economy. The "rich" cannot be taxed enough to pay it back. The numbers do not add up. The debt load will crush us. Who will buy all this debt? Generations to come w
Gov. Kaine backs expansion of Federal Govt. over State interests
Kaine will do whatever currys him the most favor with the Obama administration and the Democratic Party. It's insane to pay people who CHOOSE not to work, or who are allowed to scam the system by attending "retraining" classes, but never obtain employment.
The purpose of this extension is not to help people, but to convince more people they are incapable of providing for themselves, and must, therefore, depend on the government.
If Kaine accepts this Federal manipulation of our State laws, I hope our next Governor will have the courage to end these parasitic entitlements.
Any of the 3 Democrats running for Governor will continue the failed policies of the last 4 years. We need CHANGE! We need a Governor who will work for Virginians, not for Obama! We need Bob McDonnell!
I think those who suggest
I think those who suggest that the Governor is making this decision without regard to the effect in Virginia are wrong. Fact is, many on our Commonwealth are in trouble, none more than retailers who have been the most affected. Therefore, the acceptance of funds will allow those who have lost their job to at least continue to spend so our economy is stimulated and businesses can get back on their feet. Once the economy improves, the law can be revisited. That is the point of a stimulus package and it is working already and will have much greater result over the next two years. We appear to have avoided the financial meltdown, yet we are not out of the woods. Kaine is doing exactly the right thing.
Al you have got to be kidding
Submitted by A Markowitz on Thu, 03/26/2009 at 5:44 pm.
He should take the money. The layed off need it. Unfortunately unemployment comp in this boss's paradise is more regressive than most sates and a majority don't quality -- bosses make sure of that!
you are sadly mistaken yes the laid off need it but they also have NO RIGHT TO REFUSE ANY JOB OFFERED TO THEM just because they make more sitting on their collective arses at home. Bosses or business as you say pay this but who do these same people pass this expense to? DING DING that right the consumer the rest of us and like so many others I am tired of having my hard tax dollars be handed to those who refuse to try and help themselves and only want to draw unemployment, welfare and food stamps. The time on these programs is long enough now we need NO EXPENSION of them so tell your hero's the 4 stoogies Pelosi, Reid, Obama and the rear kisser TIM KAINE to stop this madness and quit spending away our kids future and back up some of the LIES told on the campaign trail with actions. These four mentioned before have less intelligence than the original 4 stoogies MOE, Larry ,Curly and Slep at least we knew with them it was an act
Brilliant!
"Kaine noted that the General Assembly could rescind the new benefits in two years when the stimulus runs out."
From the "horse's mouth"! He will have gone on to greener pastures and left Virginia and thousands of taxpayers with a nightMare........
Part-time Governor = disaster
Welfare State
Obama, Governor Kaine and Congressman Nye are creating a welfare state that will be paid for by creating more debt to China. Change we can believe in?
Gee
What a nice little gift to leave to his successor.
He will be off working for Nancy Pelosi and Harry Reid when these chickens come home to roost.
Let's break this down. The
Let's break this down. The showing at the bond sale to SELL the debt to investors had a poor showing. So, the goverment is looking to give away money to those who CHOOSE not to work w/ borrowed money.
Let's think about that. It's not a political issue, but a suistainability issue. It can't work. It's bad stewardship. Kaine says the benefit outweigh the impact. This is nonsense. To borrow money to pay people who CHOOSE not to work, then unload the huge amount on to employers is wrong and will not stand on it's own legs. It is pretending the economy is make believe.
HA
modest increases my arse !!! thats what he wants everyone to believe.....but add this modest increase to the next modest increase....and then to the next one.....not so modest anymore !!!At least we're getting the change people wanted.That is lack of change in our pockets when we have to pay this mess off !!!!
Timmy needs to learn where the money comes from.
Does he think it just falls from the sky? Or maybe the money fairy makes it magically appear in his pockets? Or maybe Earsbamma takes it out of his savings? OH! WAIT! Earsbamma doesn't know how to save all he knows is reckless spending program after reckless spending program. This money is coming off the backs of the people paying their taxes. That's something that it seems a lot of the Earsbamma administration can't relate to.
The layed off
The layed off need to get off their collective duffs and go to work. Plenty of jobs out there. Quit relying on the democrats to keep you tucked in at night.
if you were unemployed and had been for months
" mygorilla on Thu, 03/26/2009 at 2:25 pm.
The fact is that the feds should not be giving any money for welfare or unemployment at all"
If you and others were unemployed and had been for months all of you would be singing a different song.
Take the Dough
He should take the money. The layed off need it. Unfortunately unemployment comp in this boss's paradise is more regressive than most sates and a majority don't quality -- bosses make sure of that!
WHAT !
The elected Dems in all of Va.'s elected offices are ding what Dems do, tax and spend. Bush caused the Dems to be elected and the Dems are going to cause them NOT to be re-elcted. And so it goes.
Kaine's loyalty and commitment left Virginia long ago.
There is absolutely no doubt that Timmy Kaine, as head of the DNC, as well as Obama's buddy, will take the money. He should stop this nonsense and say so. His loyalty and commitmentto Virginia left long ago.
Timmy
Lassie says, "Timmys fallen in the well"
Yea, But
Timmy could care less what impact it has on Virginia, he will continue to do what ever obama tells him to do. Blind leading the blind. Just print more money. The next several generations will have to cover this stupidity.