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Bipartisanship Needed to Help State’s Unemployed
By Art Pulaski
Executive Secretary-Treasurer
California Labor Federation
California’s in the midst of an economic crisis of epic proportions. This economy is hammering families as workers are facing greater risk of losing their jobs, their homes, and their livelihoods.
Our state unemployment rate has jumped to 10.1%, up from 6.1% in January 2008. We’re at the highest unemployment since 1983.
Of the 1.8 million Californians who are currently unemployed, more than 700,000 of them are receiving unemployment benefits. These benefits are not only a lifeline for out-of-work Californians, they also keep money flowing into the economy, supporting local communities and businesses.
The problem is, our state’s unemployment system is outdated and nearly bankrupt. Thousands of jobless workers are in danger of running out of benefits next month unless the state acts urgently to make changes that would qualify us for billions in federal aid.
Today the state Assembly will consider AB x 3 23, which does two things to help unemployed workers.
1. The bill adopts the alternative base period (ABP). Currently, EDD calculates unemployment insurance eligibility based on the first four of the last five quarters of earnings. In the old days, this lag period was necessary because employers needed to mail in their payroll information and payments. Today, much of that is done electronically.
The ABP would allow EDD to use a worker’s most recent earnings to calculate eligibility. By adopting the ABP, we would receive $839 million in federal funds from the Obama’s stimulus plan.
2. The second provision would alter a state trigger that would make long term unemployed workers eligible for 20 additional weeks of UI benefits, fully federally funded. These five months of benefits would help workers potentially keep their homes as they try to readjust their mortgage rates under the Obama and state foreclosure protections.
Together, these two provisions would bring $5.75 billion in federal funds to California’s unemployed.
Because the bill contains an urgency clause, we need bipartisan support to maintain benefits for the long-term unemployed. And let’s be clear: inaction is not an option. If this bill fails, we’ll risk losing all this federal money and our economy will suffer another staggering blow.
This is one of the rare occasions in Sacramento when every legislator, Democrat and Republican, should be able to come together to support those in need. California’s unemployed are depending on their representatives in Sacramento to put politics aside and do the right thing.
And I’m here to tell you, we’re all watching on this one. If legislators can’t support a no-brainer of a bill like this that would provide critical assistance to thousands of families as well as local communities and businesses at negligent cost to the state, then they need to think about another line of work.
It’s not just the legislature that’s on the hook here. Governor Schwarzenegger must put the full weight of his office behind supporting this critical legislation. He’s indicated that he’s in support of making changes in the unemployment system to maximize federal dollars California receives, which is good.
But in recent days, some members of his staff have sent signals that the administration may not be prepared to act immediately.
The Administration and the Governor need to set a different tone.
Unemployed families simply can’t stay afloat without these important changes. We call on the Governor to be a leader in moving this bill quickly and getting families the help they need right away. Dithering is just unacceptable.
There are rare opportunities where the legislature can take action to immediately help Californians and actually make an immediate impact on people’s lives.
AB x3 23 provides such a chance to tell California’s unemployed that help is on the way.
Art Pulaski is Executive Secretary-Treasurer of the California Labor Federation, AFL-CIO, which represents 2.1 million members of 1,200 manufacturing, service, construction, and public sector unions.
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