The Legislature is sure to do something to fix the state’s unemployment insurance program in the coming days. The question is whether, in throwing a bone to labor, Democrats will sell out businesses.
Lawmakers were expected to deliver a one-two boost to jobless benefits this year. Workers got their share earlier this session in legislation that raised benefit checks by $45 a week and ensured that no one will receive less than $200 a week.
But when it was time for businesses to get theirs, House members balked. In the name of providing marginally better benefits to workers, lawmakers scuttled a tenuous compromise that would have given businesses a break while putting the state’s jobless program back in compliance with federal law.
The Senate had previously succeeded in brokering a deal that brought together business interests normally at odds over changes to unemployment insurance rates.
That deal fell apart in the House, where lawmakers apparently picked the unemployment bill to exact revenge for what they see as legislative leadership’s betrayal of labor this session.
Instead of merely cutting businesses’ tax rates under the unemployment program, the House version also raises the average unemployment check by a meager $14 a week in 2010 and then tacks on big tax increases for employers if the insurance fund dips below a certain level.
Employers who feel the state has been levying excessively high payroll taxes all along – and were none too happy to see the surplus go to richer worker benefits – are urging the Senate to insist on its position.
Fairness is warranted – and not just for businesses’ sake. The state’s economic fortunes and worker opportunity also depend on it.
The high cost of the state’s unemployment insurance program is consistently mentioned as a drawback to doing business in this state. Businesses that don’t come to Washington or stay in Washington can’t employ Washingtonians.
As for the employers who are here, lowering their tax burden helps keep their workers from joining the ranks of the unemployed.
The state’s unemployment fund enjoys a uniquely healthy balance. The Legislature has ensured that some of it will go to help laid-off workers. Now it’s businesses’ turn for some recession relief.
The House picked the wrong target to for its frustration. The Senate should stand by its plan.
JOIN THE DISCUSSION | Register here
We welcome comments. Please keep them civil, short and to the point. ALL CAPS, spam, obscene, profane, abusive and off topic comments will be deleted. Repeat offenders will be blocked. Thanks for taking part — and abiding by these simple rules. A thorough explanation of rules of conduct can be found in our Terms of Service. If you have any questions, including why your comment may not be showing immediately after you submit it, be sure to visit the commenting FAQ.