Warren Fiske
The Virginian-Pilot
©
RICHMOND
House Republicans turned down $125 million in federal stimulus money for expanded unemployment benefits to Virginians on Wednesday, saying the windfall ultimately would force higher business taxes.
The deeply partisan, 53- 46 vote in the GOP-controlled House of Delegates made Virginia one of the first states to formally reject stimulus dollars and looms as a key issue this fall when all seats in the chamber are up for election.
Earlier in the day, the Democratic-controlled Senate narrowly chose to accept the money on a party-line 21-19 vote.
A visibly angry Gov. Timothy M. Kaine, who is chairman of Democratic National Committee, denounced the vote as "completely unfathomable." Kaine is scheduled to appear this morning in Martinsville, a city whose 20 percent unemployment tops the state's jobless rate.
The governor, during a news conference, criticized Republicans who argued that the Democratic-controlled Congress and White House had affixed shoestrings to the stimulus money that would strip Virginia of its ability to run its own unemployment programs and cause their costs to spiral.
"This wasn't a debate about when we're going to say 'no' to Washington except for people who are sunk in a party of no mentality," Kaine said. "It was about could we find a way to provide meaningful relief to Virginians who are hit by the toughest economy this state has faced in the past 50 years?"
To receive the federal dollars, Virginia was required to enlarge its unemployment program, which offers fewer benefits than all but a handful of states. Kaine asked lawmakers to provide benefits to idled part-time workers who do not want to seek full-time jobs and extend the length of time unemployment aid is available to those enrolled in job retraining programs.
Many business interests, including the Virginia Chamber of Commerce and the Hampton Roads Chamber of Commerce, lobbied against increasing benefits. They noted that the stimulus money would last only two years and after that, the cost of the new benefits would be borne by companies and undercut their ability to create jobs.
House Republicans echoed those arguments during a 30-minute floor debate.
"Why would we do anything that would create a disincentive for an employer to hire on employees?" asked Del. Samuel Nixon, R-Chesterfield.
Democrats said it was ludicrous not to take the federal money. They said the new programs could be rescinded when the stimulus runs out. Should the General Assembly decide to keep the programs for the long term, they would cost companies about $4.50 per employee per year in additional unemployment taxes.
"Unemployed people are in crisis, and this money can help them," said Del. Jennifer McClellan, D-Richmond. "These are people who are hurting, who through no fault of their own lost their jobs and in many cases cannot pay their bills."
Virginia's unemployment insurance rates, now averaging $98 per worker annually, are the third-lowest in the nation.
The U.S. average is $285.
Republicans say the low rates are a key reason businesses locate in Virginia. The unemployment rate in Virginia is 6.7 percent, the highest in years, but well below the national 8.5 percent mark.
Even with rejection of the $125 million, Virginia will still receive about $60 million in stimulus money for unemployment benefits that does not come with tight strings.
The legislature approved several Kaine proposals to use some of that money to extend unemployment payments an additional 13 weeks, giving many Virginians a maximum 59 weeks of stipends.
Lawmakers also agreed to use federal dollars to lower the cost of Consolidated Omnibus Budget Reconciliation Act benefits to laid-off workers.
House Republicans said their support of the 13-week extension and COBRA plan proves they are sensitive to unemployed workers. They discounted Democratic threats that the rejection of stimulus money will be a major campaign issue.
"Anything we do is subject to be a point in a political campaign," said Del. Phillip Hamilton, R-Newport News. "I feel comfortable I'll be able to defend my votes today."
House Democrats voted 44-1 to accept the stimulus money; Republicans voted 50-2 against it. Two independents also opposed the funds.
Among Hampton Roads lawmakers, all Democrats in the House and Senate voted for the money, all Republicans voted against it.
Warren Fiske, (804) 697-1565, warren.fiske@pilotonline.com
Julian Walker, (804) 697-1564, julian.walker@pilotonline.com
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evanj
You must be so proud that Obama is following the republican example.
Party lines
So every Democrat voted in favor and every Republican voted against and they all cancelled themselves out; why are we paying these people to supposedly represent our interest?
Take the $60 million and shut up..
Gee, we've seen 'our Pilot's' Editorial Board remaining virtually silent about the meltdown affecting the nation, because they can't pin it all on the Republicans. But lo and behold, they certainly froth at their collective mouth when they find an issue that allows them to do so. I applaud the House for rejecting this. Looking at the bigger, long term picture is just as prudent as trying to take the 'easy road' by accepting this money with all the dictates and strings attached. The link in the editorial says that $60 million of stimulus money is none the less available, with no strings attached to it. That seems like a good start for these benefits.
And where are the owners of the Pilot in all this? They’re BILLIONAIRES. As they say, “you can’t take it with you”. They make sure their names and mugs get printed in the papers and other media they own, touting how they gave endowments and/or cash donations to this school, this cause, etc, which are laudable actions. Why don't they ante up and give some back to their state of residence here, and provide these rejected funds? I'm sure there's a huge tax break in it for them. Doesn’t charity begin at home?
Good Call
It's nice to see that the some in the state will not be pushed around by the obama administration. The federal government does not DICTATE what a state should do. If the state elected officials decide it's not the right thing to do, then they are speaking for the people of the state. So be it.
Kinda the similar argument some in VB have over LRT. Some think that the VB council should decide what is best, and so be it.
We elected them to make decisions. So if it's right in VB, then it's right in Virginia. Right?
Wow Just Wow
Playing politics with the unemployed people of Va. is just sick and heartless.The republicans will pay dearly for this one.
Historical refresher
VA Steve, thanks for the refresher. As I understand you, VA voted twice not to leave the Union, but Abe insisted that states should not secede and this pushed VA into the Confederacy? Good cover story. Try these refresher points (these can be easily found on the internet): Look up the Cornerstone Speech by Alexander Stevens, VP of the Confederacy, in which he explained the unique feature of the founding of the Confederacy and look up Section 9, Para 4 of the Constitution of the Confederacy (It's analogous to the right to bear arms amendment in the US Constitution). I still think that the ancient Civil War under the guise of “State’s Rights” had a lot to do with protecting property rights of prominent businesses. Times and social norms change, but privileges and rights of the powerful will always be protected.
Good laugh
You should have thought about this when Bush and the Republicans had both houses. They weren't so fiscal weren't they? Were the books still in publishing? The screw-ups are the Republicans and their neocons.
That was a good laugh because it was the second in a row in this same forum. If you can't defend these socialist policies, and want to be rational, you have to admit their wrong rather than try to change the subject by attacking someone else.
It's not how much you get but how you use it.
-Spend, spend, spend nothing changes and the cycle never ends. Why save and pass on legacy to my family at the grave when I can go in debt and be a living debt slave?
Quick Reenactment!
Man off the street: "May I apply for a job with your company?"
Human Resources: "Yes, let's do an on the spot interview."
Man off the street: "That's OK, I just need to apply to show proof of
doing a job search to keep my benefits."
Human Resources: "Would you want a job if we hired you?"
Man off the street: "No..."
-I say let's hit the businesses over and over until people who really want to work can't find jobs because businesses have to pay for those who won't.
-Evil Republicans, blind to the common folk and loyal to their business interests.
-Evil Democrats, hating to see people have to work to earn and escape the entitlement mentality that makes for loyal lemming voters.
-Evil ignorant masses, choosing sides and getting bamboozled by both.
"Just like giving a child a
"Just like giving a child a credit card."
Well, I'm an adult and I have a credit card. Although I know two years from now I'll have to deal with that problem, two years from now I'll be in a better position to handle it. But right now it's what getting me by.
Nobody said these were permanent solutions, buddy. But right now it's all a lot of people have. I get so sick of people like you who are willing to let those in need lose their homes and their everything else based on principle. Yes—people should work, yes—people should have an education, yes—people should be more self-reliant, yes—the government should be less involved with businesses and peoples' lives. But guess what, there's no such thing as an idealistic situation in reality. You act like welfare and social services and benefits for the less-fortunate were stamped out of existence during the Bush administration and now Obama has just strolled in to get his "people" all back on welfare. Grow up, man.