Raleigh, N.C. — 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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Well You have lost all credibility now. ..Otherwise would not be there???? Where the heck does it come from? Gov. Takes it from somewhere and if they did not take it, and take a cut for distributing it...then they would not have it...IE it would be in the market.... in folks pocket, letting them choose how to spend it. Yes I know it comes from business, but it ultimatly comes from people. Comment on his specific quote. How do you take money from one person, give it to another, and think thats stimulating the economy...If we all stopped working and went on unemployment, based on your logic...the economy would grow like crazy. It is you sir, that is showing your clueless status.
February 1, 2013 8:41 a.m.
are you really this clueless? Of course unemployment payments stimulated the economy during the recession. How could they not as the put money into the economy that otherwise would not be there. Furthermore they reduced the number of foreclosures and so stopped the collapse of the housing market.
February 1, 2013 8:30 a.m.
The paperwork would reveal it without anyone saying a thing.
But then, as a Sarge, you'd know that. Right?
You have to prove it, therein lies the crux.
February 1, 2013 8:21 a.m.
February 1, 2013 7:00 a.m.
January 31, 2013 9:05 p.m.
January 31, 2013 8:32 p.m.
January 31, 2013 8:22 p.m.
I agree we need to revamp the unemployment I believe they should work strenously to get the unemployment down and then revamp unemployment. Hanging our citizens out to dry is not ethical and we should all realize that we could in that position as the other half a million people in NC are.
January 31, 2013 8:21 p.m.
January 31, 2013 8:10 p.m.
January 31, 2013 8:04 p.m.
Would you help your family and friends eat by selling your home, car, boat, RV and empty your 401K?
I guess its a question you can answer to the Ulmighty himself.
January 31, 2013 7:50 p.m.
And will result from those same people going on welfare and food stamps to survive, benefits which THE TAXPAYER FUNDS, instead of leaving them on unemployment which THE EMPLOYER FUNDS.
Idiocy!!!
January 31, 2013 7:49 p.m.
It was the Democrats who gave businesses a ride at the lower rate FOR DECADES Rebel - not the Republicans.
But now the Republicans are compounding the problem by not correcting what the Democrats did, and worse - sticking it to those without jobs and without money - simply to try to keep from sticking it to employers EQUALLY who they fear might take their jobs and businesses elsewhere.
I say, do it 50/50, or look for the $$$ elsewhere.
January 31, 2013 7:47 p.m.
That's surely what I'd do, but how many employers do you know nowadays that put their employees ahead of their profits?
Pretty darn few, I'd say.
SAS maybe.
That's the only one I can think of, and that's a maybe cause I'm not too familiar with the company and their methods in recent years.
January 31, 2013 7:44 p.m.
But no, a sensible employer wants to run the business they got into with a loyal, reliable crew. Even if you don't "care" about your emps, it's just working smarter not harder.
January 31, 2013 7:35 p.m.
WOW! Common sense all the way. I'm just glad someone else see's this as well.
January 31, 2013 7:22 p.m.
NC SENATOR'S PROPERTY SET FOR FORECLOSURE SALE
TARBORO, NC — A foreclosure sale on property belonging to six-term Democratic state Sen. Clark Jenkins of Tarboro is scheduled for April. Jenkins and his wife defaulted on a loan owned by PNC Bank and owe $488,800.36, including $35,701.34 in past due payments, $1,235.52 in late fees and $225.50 in other related costs.
An affidavit submitted by PNC on Dec. 12, 2012, said the last payment made on the loan was for the period ending Sept. 1, 2011.
Also, Dare County records show Jenkins owes delinquent taxes of $3,272.98.
Jenkins serves on six committees, including the Senate Finance Committee."
http://www.wral.com/nc-senator-s-property-set-for-foreclosure-sale/12049145/
Ain't THAT just grand?!?
January 31, 2013 6:35 p.m.
January 31, 2013 6:25 p.m.
January 31, 2013 6:25 p.m.
We need a [Like] button here.
:)
January 31, 2013 6:13 p.m.
Dead right. And those responsible for the above will continue to be "surprised" when the unemployment reports come out and their stocks continue to tank.
January 31, 2013 6:04 p.m.
With the US having lost FOURTEEN MILLION JOBS since 2006/8???
No doubt about it then, they need to work on bringing some of those jobs back from overseas, heavily taxing companies who take jobs from US citizens to give to overseas companies for no other reason than the workforce can be had for peanuts there.
January 31, 2013 5:55 p.m.
That I agree with, and I've stated it should be 50/50 or they need to look elsewhere altogether.
January 31, 2013 5:52 p.m.
"Glad to hear a sane voice out in the darkness." - alicebtoklas
Agree, along with many more I know.
January 31, 2013 5:43 p.m.
January 31, 2013 5:30 p.m.
When do they plan to start? Republicans have held the legislature for 2 years yet NC is among the leaders in nation wide unemployment rates.
January 31, 2013 5:29 p.m.
It was the Dems who did that, over and over again, setting this state up for this mess."
Nevertheless, it's the GOP that's chosen to fix this mess disproportionately on the backs of the newly laid-off, rather than with those companies that benefited from the lowered UE taxes.
January 31, 2013 5:29 p.m.
In a State the size of NC its not exactly big money either. Its $21 per employee per year for about 5 years.
Grand Union
you just said $2.5 billion is not exactly "big money"........
$2.5 billion isn't worth doing anything about? is that the best arguement you can produce?
I am trying to talk to someone about money who thinks that $2.5 billion is no big deal....
...well excuse me Mr. Buffet!
(done for the day!)
January 31, 2013 5:13 p.m.
employers can lie......I've seen them do it. they have an interest in saying an employee was negligent etc just as much as the employee has an interest in saying they were not.
January 31, 2013 5:13 p.m.
ALL OF THEM!!!
Have you not heard or read the news since 2007???
Even hospitals were laying off staff, from doctors to nurses who thought they'd never get laid off, nor should they have.
January 31, 2013 5:09 p.m.
Please cite your source of information on this.
The "rich" have most of the money (& income) so they darn well should pay most of the taxes.
January 31, 2013 5:09 p.m.
Source? and why only income taxes? and would you rather earn 1 million and pay 500K in taxes or earn 40K and pay 5K in taxes?
which would be the greater burden?
January 31, 2013 5:08 p.m.
The GOP wasn't in the majority in this state when the votes were taken repeatedly to lower the UE Fund.
It was the Dems who did that, over and over again, setting this state up for this mess.
January 31, 2013 5:07 p.m.
Grand Union
Capital gains tax + income tax is lower than just income tax?
please tell me how this works cause if thats true the gov't has been taking too much from me
January 31, 2013 5:06 p.m.
geez
It is when the "turnips" you're trying to wring it from DON'T HAVE A JOB!!!
January 31, 2013 5:06 p.m.
I would dearly love to see where you got the 86% from.
Or is that 86% gross, before they start taking the truckload of deductions?
January 31, 2013 5:05 p.m.
In a State the size of NC its not exactly big money either. Its $21 per employee per year for about 5 years.
January 31, 2013 5:04 p.m.
You explained it very well. Thank you!
Few employers with sense would do that though. Don't you think? Unless they were just trying to get rid of that particular employee for some OTHER reason which sometimes happens.
January 31, 2013 5:04 p.m.
Yeah, because Bev was so much better???
NOT!!!
January 31, 2013 5:02 p.m.
Not at all, everyone loses when that happens. Russia is still recovering from that mistake. The West faced the same threat in the 20 and 30s, some turned right and became Fascists(we know how that turned out) and others went for the "new deal" approach. Who did the best in the long run?
January 31, 2013 5:02 p.m.
=====================================
Oh, they understand it, just don't care. Sad this administration doesn't seem to grab the idea.
Bartmeister
and you are exactly right. it's a pure mentality. even privately, friends relatives, etc. will take loans and do the most profoundly dumb things b/c they "need" something.
I "need" a new car. we "need" a bigger home.
ok that doesn't mean get a brand new escalade with 22's and half million dollar house when you make $50k just cause on paper you can "make the payments"
you know what I mean...
January 31, 2013 5:02 p.m.
January 31, 2013 5:00 p.m.
Maybe the logic is such that the employer knows the content of the job and the attitudes of the other workers and has a certain responsibility to provide tools and guidance till the employee has had a reasonable training period. You can't just hire an underqualified person and then meh, let them go, they couldn't perform. Well, you can, and then you get to pay for your carelessness. Seems fair.
January 31, 2013 4:58 p.m.
I understand interest full well.
I also understand one can't squeeze blood from a turnip, but that's exactly what our legislators are trying to do with this bill.
Do it 50/50, employer/UE beneficiary, or not at all.
Nephesh Kai
i would argue that 2.5 billion is hardly "blood from a turnip"
January 31, 2013 4:58 p.m.
I'll tell you what's fair - when at least some of these GOP apologists get laid off, or "optimized", or "RA'd", or whatever the euphemism of the day is - and they quickly realize that flipping burgers won't even begin to pay their COBRA expenses.
January 31, 2013 4:58 p.m.
Karma indeed!
January 31, 2013 4:56 p.m.
Tell us when you thought it was last a common sense Gov?
January 31, 2013 4:55 p.m.
Thats bogus. Higher returns take that into account....taxes are only payed on gains and losses are deductible. So unless you are very careless with your investments you make far more money and pay a far lower rate of taxes than if you actually worked for that money. I know, I have investments.
January 31, 2013 4:53 p.m.
=====================================
Oh, they understand it, just don't care. Sad this administration doesn't seem to grab the idea.
January 31, 2013 4:53 p.m.
When the companies went for the throat between 2007/9, they started by laying off middle management, often those who'd been with the company 20-30 years, and let their subordinates fill their positions for far less.
Many of those people are STILL looking for work.
Nephesh Kai
what industry?
January 31, 2013 4:52 p.m.