Some lawmakers vow to fight on for $125M in jobless aid

RICHMOND

One day after the General Assembly rejected $125 million in federal stimulus money by refusing to expand the state unemployment system, some Democrats on Thursday were plotting other ways to get the money.

"This is not over yet," said Del. Ken Plum, D-Fairfax. "I can't give you a specific strategy at the moment, but I can tell you this: We're not going to let the issue rest. It's too important to too many Virginians."

Republicans successfully defeated the expansion during Wednesday's legislative session, arguing that it would cripple businesses by driving up taxes.

Democrats said the changes could be repealed when the federal money was spent and insisted the future costs to businesses would be minimal.

To qualify for the money, states must agree to open their unemployment programs to workers not previously eligible for benefits. Gov. Timothy M. Kaine chose to add part-time workers and people in job-training courses.

During Wednesday's debate, however, some legislators said a major shift in unemployment policy shouldn't be rushed.

"I just can't agree that this is a do-or-die situation right now," Sen. Kenneth Stolle, R-Virginia Beach, said Wednesday. "All that I think will happen... is we get to take it through the legislative process next year."

Fearful that the money may not be available next year, Kaine and some Democrats seemed unwilling to wait.

"We're going to have to start thinking tomorrow about, 'What do we do?' " a visibly frustrated Kaine said Wednesday night, not long after the proposal died. "I'm not going to leave Virginia workers stranded."

When pressed by reporters, Kaine would not say whether he will call lawmakers back to Richmond this year to address the issue again at another legislative session.

The governor spent Thursday in Martinsville, a city of roughly 14,500 in southwest Virginia, where the 20 percent unemployment rate is the highest in the state.

Kaine spokesman Gordon Hickey said that when the governor returns to Richmond today, "he'll sit down with his staff and figure out what to do."

Virginia will receive about $63 million in unemployment stimulus, regardless of what happens with the $125 million. But that was little consolation to officials who wanted all the available money.

"When people need the money, why would you delay and make them suffer another eight months? " said Sen. Janet Howell, D-Fairfax. "It seems callous and uncaring."

It remains unclear whether additional unemployment stimulus funds will be available next year.

The National Conference of State Legislatures believes that the funding isn't guaranteed in the future, an official said.

But the Virginia Employment Commission's interpretation of the federal stimulus regulations is that the unemployment money will be on the table through 2010.

What is undisputed is that Virginia's unemployment rolls have swelled to 291,000 people.

A t the rate money is being withdrawn to pay benefits - $25 million per week - the state's benefits trust fund will be drained by next year, meaning the state would need a federal loan to make those payments.

Julian Walker, (804) 697-1564, julian.walker@pilotonline.com