If you were offered $ 125 million, you would turn it down? That's what happened this month when Virginia Republicans to reject up to $ 125 million in federal stimulus money to help fight unemployment voted. This was not a narrow victory - in fact, the House voted in favor the proposal, 53-46 Virginia Governor Tim Kaine is, the benefits will be extended for unemployment to decline.
The Virginia legislature were the first in the country, a governor of the decision for stimulus money to be overwritten. The Democratic PartyVirginia, which have the majority, and urged that the proposal, expressed their dislike of the results in the following statement:
"Unfortunately, families are Virginia, for policy decisions today by Virginia Republican leaders of the federal stimulus block pay the price," said Jared Leopold, communications director for the party. "Once again, House Republicans have chosen to play political games, rather than concrete results for Virginians affected by this are hardEconomy. "
"Bob McDonnell and Virginia House Republicans have made clear that they would rather see attraction of the federal money would go to other states as Virginia, have lost their jobs. We welcome Governor Kaine and members of the House of Representatives and the Senate, the got up today for Virginia's working families, "he added.
Virginia was the first state to deny these funds, but not the only one. Other states that followed were Mississippi, Louisiana, South Carolina, Alaska andTexas. Significantly, the states are begging for federal aid, which could motivate them to reject such an offer?
The money does not come without the provisions. It was intended for amendments to the emergency relief program that would allow the procedure laid off workers to an additional 26 weeks of benefits received while enrolled in continuing education programs, extension to the regular unemployment insurance and food stamps. Under the new policy, even if it is only partwork would be for unemployment insurance benefits into consideration.
It was the consensus of all states that went once out of money, would the local companies will face higher taxes to finance the new program. In Virginia, representatives from the House Republican leader, several local businesses and the Chamber of Commerce, claimed the employer would face an increase in payments to the unemployment trust fund of up to $ 4.50 per employee per year. They were worriedcause short-term gain would be long-term regret in later years.
"The effect of these two provisions, individually and cumulatively, is not known at this time, but eventually they will be Virginia taxes on jobs and employers, and further reduction of state UI trust fund to increase," said the Virginia Chamber of Commerce.
That sounds uncannily similar to a "do not pay for one years' event, it's great for the promotional period, but after that the interest rates go up in the sky. Is not thatas we get into this trouble to begin with?
On the other side of the fence, Virginia to pay workers an average of $ 98 per employee per year for unemployment benefits. Compare this with the national average of $ 258, even if the prices increase to $ 4.50, they are still fairing pretty well.
In the meantime, the $ 125 million that the state has failed, will just go into a pot and divided among other states. Currently, there are approximately 300,000 residents of Virginia unemployment, manythe extended benefits would have obtained a result that program. I wonder what those Virginia residents struggling to make ends would say about the decision?
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