By Michael Peltier
The New Service of Florida
Measures to postpone increases in the unemployment tax rate passed easily through committees in both chambers Wednesday though labor advocates argued the bills do nothing to help unemployed workers missing out on benefits because of an antiquated system dating back to the pre-computer era.
With legislative leaders hoping to take final action during the first week of session, the Senate Ways and Means Committee approved a bill (SB 1666) that undoes legislation passed last year to bolster state unemployment coffers in response to jobless rates not seen since 1975.
Shortly afterward, the House Finance and Taxation Council, passed its version (HB 7033) by a similar unanimous vote. Both bills extend benefits for an additional eight weeks.
Legislative leaders want to pass the bills out during the first week of session with payments due April 1 for businesses. Those taxes are as much as twelvefold higher than last year for some businesses.
Business groups, which agreed to the rate hike last year, said the tax increase is a job killer that will result in business closures and additional unemployed workers if not repealed or at least delayed.
Labor groups including the AFL- CIO have no complaints about postponing the rate hike, but say lawmakers should also use the opportunity to draw down nearly $450 million in federal stimulus funds by modernizing the state’s compensation system to allow benefits to recently unemployed workers.
“This legislation is going to bail out key components of Main Street,” said Rich Templin, spokesman for the AFL- CIO Florida. “But who is bailing out Amelia Circle? Who is bailing out Elm Street? Who is bailing out the streets and neighborhoods where our people live who are currently hurting?”
Florida lawmakers last year approved the use of additional federal unemployment compensation funds, but rejected the $444 million because it required the state to do away with rules that now prevent unemployed workers from collecting benefits for employment in the most recent quarter.
The requirement is a throwback to an era when unemployment claims had to be tabulated by hand. With the advent of computers, such data is readily available and could allow the state to provide compensation to workers who have more recently lost their jobs, advocates of the change say. Seasonal workers in agricultural, hotel and construction industries are being especially hurt by the current system’s three-month delay, backers say.
If updated, the program would increase recurring expenses of the program by at least $75 million a year, said Sen. Mike Fasano, R-New Port Richey.
Business representatives on Wednesday say the expansion on unemployment benefits is a matter to be dealt with in a separate bill and should not be part of the two-year postponement of rate hikes.
“This is a job killer; we need some relief,” said Randy Miller, executive vice president of the Florida Retail Federation. “We oppose any modernization as related to this bill and what we’re trying to do here.”
