Va. Dems, GOP spar over stimulus for jobless benefits

RICHMOND

House Republican leaders Thursday fired back at Democrats who have accused them of being callous for rejecting $125 million in federal stimulus money that would extend unemployment benefits to more Virginians.

Flanked by business owners who support their stance, House Speaker William Howell, R-Stafford County, and Del. Sam Nixon, R-Chesterfield County, said GOP legislators approved benefits for idled workers but refused the $125 million because it would stall Virginia's recovery from the recession.

The changes offered by Gov. Timothy M. Kaine "would have led to higher taxes on every job in Virginia, making new job creation significantly more difficult," Howell said at a news conference in the state Capitol.

To get the stimulus money, Virginia must expand its unemployment system to cover certain jobless workers not currently eligible for benefits. Kaine wants to add part-time workers and those in career training programs to quality for the stimulus dollars. Virginia's current system provides benefits only to eligible individuals who were full-time workers.

Expanding the pool of eligible workers has a cost: Employers would pay about $4.56 more per worker each year in unemployment insurance costs when the $125 million was spent - unless the expansion is repealed later by the General Assembly.

The annual increase would be added to ballooning unemployment fees paid to the state by employers. The present annual average cost of $95 per worker is projected to more than double to $201 by 2011, according to the Virginia Employment Commission.

Republicans say those costs will discourage businesses from adding jobs and delay people's return to the work force.

Democrats have hounded Republicans over their rejection of the $125 million since the House defeated the plan this month and are expected to make it an issue in the fall elections.

Insisting that the proposed unemployment expansion is modest and could be reversed when the economy recovers, Democrats continued their attack in a Thursday afternoon conference phone call just hours after the Republican's event. House Minority Leader Ward Armstrong, D-Henry County, said GOP legislators ignored the needs of working people and businesses by refusing the stimulus money.

Although Republican legislators turned down the $125 million expanding some benefits, they were among those who voted to accept up to $65 million in stimulus funds for other unemployment-related programs.

Lawmakers approved extending unemployment benefits another 13 weeks, bringing the maximum total coverage period to 59 weeks, and voted to lower health insurance costs for laid-off workers.

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