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2:09 p.m. • 5-22-13

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GOP muscles jobless benefits cuts to House floor

Published: 2013-01-31 11:23:00
Updated: 2013-01-31 18:24:18

The Republican majority of the House Finance Committee beat back efforts Thursday morning to soften legislation slashing jobless benefits as part of an overhaul of the state unemployment system.

After a 23-13 party line vote, House Bill 4 is expected to go to a floor vote Monday night.

The bill cuts the maximum weekly unemployment benefit from $535 to $350 and replaces 26 weeks of state-paid benefits with a sliding cap of 12 to 20 weeks, based on the health of North Carolina's economy. It also slightly raises unemployment insurance taxes on employers.

Analysts said the changes would help the state repay $2.5 billion to the federal government three years faster than leaving the system unchanged. North Carolina borrowed the money to pay jobless benefits during the recession.

"This is going to cost us jobs if we don't act," said Rep. Harry Warren, R-Rowan. "It's not an easy solution."

Other Republicans voiced similar regrets about cutting jobless benefits but said the state needs to get its unemployment insurance system on sound financial footing.

"We need to emphasize putting people back to work rather than compensating them for being unemployed," said Rep. Jeff Collins, R-Nash.

Proposed amendments by Rep. Paul Tine, D-Dare, to set the maximum benefit at $425 a week and raise taxes on employers a bit more and by Rep. Deborah Ross, D-Wake, to use a 1993 formula for calculating benefits were defeated by party-line votes. The GOP didn't even allow votes on two other amendments, calling them out of order.

Rep. Paul Luebke, D-Durham, pleaded with the committee for more balance to the bill. He noted that the benefit cuts amount to about $225 million taken out of the pockets of unemployed people statewide, while the tax increases on employers would total only $20 million.

"The unemployed were not at the table when this deal was cut. Don't let anyone tell you otherwise," Luebke said, calling the benefit cuts "reprehensible."

If approved, the changes would take effect July 1, ending federal unemployment benefits received by thousands of North Carolina residents who have been out of work for months. The benefits would have continued through the end of 2013 under a bill Congress passed on New Year's Day to avert the so-called "fiscal cliff," but changing the state unemployment benefits voids that provision of the federal law.

The committee debated the bill for more than 90 minutes before allowing four minutes of public comment by representatives of the N.C. Justice Center and the AFL-CIO.

"It's not balanced," Bill Rowe, general counsel and director of advocacy for the Justice Center, said of the bill. "Employees will be paying more than 70 percent of this debt in reduced benefits."

Rowe urged lawmakers to let the bill sit in committee for at least a week to give their constituents a chance to voice their opinion on the proposal.

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"Sound financial footing."

WOW!!! Such a strong and common sense statement that is too often ignored in politics.

Good deal... This Un payments were drawing out,,, Who wants a job when you can get 500.00 a week to stay home

Want to save money? Offer to pay 700 a week, but drug test to get the check.

Good start. I would suggest keeping the 26 weeks maximum benefit but cutting to $350.00.

We HAVE to start paying back our debt to the Feds. It is not fair to penalize business that is trying to get back on their feet with additional cost. Our UE premiums have increased by 50% this year.

Too bad Bev and her ESC appointees gave away all those millions in improper benefits. and then decided not to ask for them back. We could use the money she squandered now...

I find it so discouraging to read the comments on WRAL. So often, they are mean-spirited, selfish and ill-informed. I am glad they don't represent the sentiments of most North Carolinians. You people scare me.

The math is simple 525/40hrs = 13.25 per hour, who in their right mind would take a job making less? 350/40=8.75 per hr. Managers at a local home improvenment center make less than 13,25 per hr. It is part af an institutional problem when you are paying people more to stay at home than they can make working. The problem with that is you eventually run out of other people's money to pay the tab. If you dont like making minimum wage, you should have taken advantage of the free public education offered to all. Grants pay most of the $ for college tuition to those from need based homes.

I am a teacher and so is my wife, we have had a 1% pay raise in since 2007. We were just paid today and with the new tax increase we saw a net decrease of $200 in our monthly income versus a net increase of $80 in salary since 2007. Yes, I am thankful I have a job! Maybe not the right place to post this but I am really frustrated right now!

"We need to emphasize putting people back to work rather than compensating them for being unemployed," said Rep. Jeff Collins, R-Nash. - AMEN!!

"We need to emphasize putting people back to work rather than compensating them for being unemployed," said Rep. Jeff Collins, R-Nash.

Any suggestions there you "job creators?" He acts like there are a wealth of jobs out there just ready to be filled...

the funny part about this, quite a few that voted GOP are on unemployment.......you get what you voted for! you wait they will start screaming in a few minutes!

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