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Unemployment bill
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Unemployment insurance remake headed to governor

Published: 2013-02-13 14:33:00
Updated: 2013-02-13 17:29:34

The Senate voted 36-12 Wednesday to give final legislative approval to a bill that remakes North Carolina's unemployment insurance system. The bill now goes to Gov. Pat McCrory. 

It has been the subject of fierce debate over the past three weeks. Opponents of the bill says it takes more from unemployed workers than it asks of businesses.

"It is not a bill of shared sacrifice," said Sen. Josh Stein, D-Wake. 

North Carolina built up $2.5 billion in debt to the federal government during the recession paying unemployment claims. The bill seeks to repay that money quickly to avoid a series of federally mandated tax increases on businesses. To do that, it raises state unemployment taxes a small amount.

It also cuts benefits for unemployed workers, limiting both the duration of benefits and capping weekly benefits at $350. The measure also forces unemployed workers to take lower-paying jobs when they become available rather than waiting to higher-paying jobs that might better match their experience.

"We heard a lot of talk yesterday that we did not care about people," said Sen. Tom Apodaca, R-Henderson, defending the measure. "I think we're all very concerned. We all believe the best thing we can do for someone (who is) unemployed is to find them suitable employments."

Republicans argue that, by limiting tax increases, the state will attract more businesses and create more jobs. Stein and other Democrats argued that, even if that recovery comes, people will be hurt in the meantime.

"If you put too much burden on people who lost their jobs through no fault of their own ... you create real hardships for those families," Stein said. 

The measure now goes to McCrory, a Republican who has been supportive of the measure. 

Four Senate Democrats crossed party lines to support the GOP-crafted measure: Ben Clark, D-Cumberland; Clark Jenkins, D-Edgecombe; Gene McLaurin, D-Richmond; and Michael Walters, D-Robeson.

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Maybe the GOP is hoping for something like what happened in Mich. to drive the unemployment rate down. People who could not find jobs eventually left. The state lost several hundred thousand people from 2007 to 2010. Now there are several bankrupt cities like Detroit and Flint that don't have enough of a population base to provide basic services like police, and fire protection. dennis8

Good points, but you neglected to mention it was Democrats who killed those cities. I lived in Michigan for 19 years and watched Detroit rot on the vine from corrupt leasdership. Read the book Escape from Detroit. It tells you what the media is to afraid to say about Detroit.

Message to the Governor: Go ahead and sign this and screw up an already bad situation. For folks like me who have been unemployed right at 6 months, more than dilligently searching for work, and barely getting by, we will be even worse off. That will leave us with one income--not enough to feed our family and keep a roof over our heads. Just remember, we might be unemployed, but we still vote!

not counting clothing, educational training, and of course food. To the best of my knowledge, no one was turned away. And you? mep

He's a lib, he would rather tell you how to spend your money than put his where his mouth is

those who are deserving should not be made to do without because so many corrupted the system? 101jackson101

I agree with you. We need more oversight to weed out those that are hustling the system. Problem is when you start with that people start screaming racism

"It has ALWAYS been the role of the church, not govt to care for the poor, disabled and the elderly" - mep

Too bad the church is too busy helping itself. After salaries and facility expenses there usually isn't a whole lot left for helping people.

What about people that don't go to church but are still otherwise decent and law abiding citizens? I guess they don't deserve help. If they don't believe in your God or brand of religion they are unworthy of help I suppose.

This country was founded on the premise of freedom of religion which would also include freedom from religion. Ones ability to receive assistance in time of need should not be depended on their beliefs.

"It does me no injury for my neighbor to say there are 20 gods, or no God. It neither picks my pocket nor breaks my leg." - Thomas Jefferson.

"BillO.... Obviously you dont read the Bible.

It has ALWAYS been the role of the church, not govt to care for the poor, disabled and the elderly"

Actually, apparently you do not read the bible. At no time did jesus ever say the "government" should not take care of the sick and the poor.

Jesus lived his entire life subject to roman occupation. Jesus did not have governmental power to use. The only jewish figures in the bible with local governmental power were in the old testament. The bible is FULL of stories of them using their power to show kindness and mercy to the sick and needy.

Forclosures will be back on the market, welfare will go up and food vouchers will be the meal for the day, but we cannot continue an endless time limit yet those who are deserving should not be made to do without because so many corrupted the system?

The poor, disabled and the elderly are still waiting for the church to help them. I don’t think a child should starve or an old lady should freeze hoping they *might* get help. WooHoo2You

Then I think YOU should be doing something about that... and not turning the responsibility for those poor souls over to an inept govt. So how much of your paycheck did YOU give to help the poor last year? How many hours serving food or donating clothes? I was bless enough to give well over 10% of my gross. The church I attend and support gave over a million dollars right here in Raleigh to various charity organizations... not counting clothing, educational training, and of course food. To the best of my knowledge, no one was turned away. And you?

Maybe the GOP is hoping for something like what happened in Mich. to drive the unemployment rate down. People who could not find jobs eventually left. The state lost several hundred thousand people from 2007 to 2010. Now there are several bankrupt cities like Detroit and Flint that don't have enough of a population base to provide basic services like police, and fire protection.

It has ALWAYS been the role of the church, not govt to care for the poor, disabled and the elderly- mep

The poor, disabled and the elderly are still waiting for the church to help them. I don’t think a child should starve or an old lady should freeze hoping they *might* get help.

If the DEMOCRAT held State allowed businesses to pay less, then left our current administration with the $2.5 billion dollar bill... the new administration must find a balanced way to pay for it. This plan does just that. mep

C'mon you know democrats dont like paying bills, they just like spending your money-Crumps Br0ther

I like to way you try to *spin* RAISING TAXES ON BUSINESSES into a good thing...the right thing….not the complete and polar opposite of what the GOP preaches (note, but not what they do!!!)

BTW, many other REPUBLICAN states are in the same boat we are in. It’s called the 2008 Recession and it’s side effects.

If the DEMOCRAT held State allowed businesses to pay less, then left our current administration with the $2.5 billion dollar bill... the new administration must find a balanced way to pay for it. This plan does just that. mep

C'mon you know democrats dont like paying bills, they just like spending your money

To answer your question. First, businesses pay per employee.... so if its raised 50 cents per week per employee, it can add up to a lot more than the $200 per week reduction.- Mep

If you have 400 employees for every 1 unemployed person it'd come out even.

that would be an unemployment rate of 0.25%

Since the actual rate is many many times higher it's nowhere near "balanced"

Nor does it make any sense to "balance" it in the first place.

100% of the underfunding was BUSINESSES not paying enough.

So 100% of the paying it back should be from BUSINESSES.

Nobody has given any rational explaination why _anything_ should come out of the pockets of the unemployed.

because there isn't one.

BillO.... Obviously you dont read the Bible.

It has ALWAYS been the role of the church, not govt to care for the poor, disabled and the elderly. Even as a "church community", the act of giving of time and money is personal. No where in the Bible does it indicate that it is the role and responsibility of the govt to meet these social needs.

Take a good hard look at the current social services here in America, and how they are exploited by those not really in need. PERSONAL serving and giving would identify these individuals and weed them out.... (A man that will not work shall not eat).... but as it is, our govt (Not a charity organization) hands out tax dollars (other peoples money) as if it were nothing.... enabling exploitation of the system.

"How did companies trying the weather the recession and a decline in business create the unemployment problem? " aetius476

It was companies paying lobbyists to advocate underfunding the UI system in the form of a tax break for employers- not companies weathering the recession creating the debt. Now that it's time to pay for the party who gets the tab? Those unemployed through no fault of their own, thanks to republicans.

Those of you on social security who pulled a delivery wagon uphill both ways when you were in school, (and probably did not have a mortgage, a family to feed and $800/month health care costs) who argue from a philosophical standpoint that UI is immoral welfare for the shiftless - you need to realize you are in a fringe minority thought to be extinct for about 80 years.

junkmail5

To answer your question. First, businesses pay per employee.... so if its raised 50 cents per week per employee, it can add up to a lot more than the $200 per week reduction. There are far more EMPLOYED people paying into the system than unemployed taking out. And as stated, NC already has one of the most generous UE benefit plans in the South East.

If the DEMOCRAT held State allowed businesses to pay less, then left our current administration with the $2.5 billion dollar bill... the new administration must find a balanced way to pay for it. This plan does just that.

One thing the article leaves out is that employers in NC (and many other states) are already paying extra Federal Unemployment Taxes because of this debt. The article makes it sound as though this move will avoid that, but will only shorten that. This of course is in addition to the increase in NC Unemployment Taxes. Also, this change does not affect anyone already unemployed long term until July. Many will exhaust benefits before then. And, hopefully, many will find a job they can accept before July.

How did companies trying the weather the recession and a decline in business create the unemployment problem?- aetius476

You mean the unemployment insurance DEBT problem.

Which they helped create by underpaying into the fund for years.

Again per my earlier post state govt. gets some blame for keeping the rate that low... but the businesses are the ones who got the benefit of it.

So now it's them as should pay the money they should have been paying all along.

In short- the debt EXISTS because of how little they have been paying for years. So now it's time to pay MORE to get rid of that debt.

But instead they just jack the money from the unemployed. Because, you know, to heck with them!

"It would be a true shame for the companies that created the unemployment problem to actually contribute to fixing it. We can't have that." - Chemist18

How did companies trying the weather the recession and a decline in business create the unemployment problem?

I know a lot of small business owners that hung on at steep cost to themselves, just so they could employee folks. These are the risk takers and entrepeneurs that provide you an opportunity to work. Why demonize them?

Everyone can't work for the "givernment" and be paid by the taxpayers. As much as you leftists would like to think...

$21 per year PER EMPLOYEE- Mep

Yes. Which is less than 50 CENTS a week.

Versus $200 a week per unemployed persons UI check.

The $2.5 billion dollar debt must be paid back... it was not the fault of the employer- Mep

well, it kinda was, though the state govt. certainly gets blame too.

The state kept the tax rate too low for too long, so we didn't have enough saved up to cover benefits during a recession.

That's the states fault, but in part due to lobbying from the businesses. And it was the businesses that got to pocket the savings from the tax being kept low.

So it's the business that should have to repay the money we were short because THEY were paying so little for years.

How does that NOT make sense?

Perhaps putting this governor in charge was indeed a BIG IDEA... He has given government employees raises and he is not going to approve a bill to reduce unemployment benefits for those people who have lost their jobs through no fault of their own....and he thinks this is the best way to help NC....REALLY?????? Now we will all see the DOMINO EFFECT of just how this is going down...and it ain't going to be a good thing.

"I am one of the long-term unemployed who will be affected by the new change. I am currently in school after working all of my life trying to get a degree that I hope will enhance my efforts to find a job." - racer3030

Gosh, when I was in school, I washed dishes at night, and drove a delivery truck on the weekends to make ends meet.

I didn't realize you could be supported by UE benefits while you go to school? Must be nice.

And folks here wonder why we would want to tighten the system?

"At no point did Jesus EVER intend charity to be a govt thing."

Wow. Besides the incredible arrogance of trying to speak for jesus, you really miss the historical context of his life and teachings. Jesus will living in roman occupied palestine. Even then, the only thing he ever said about taxes is that you should pay them. Rome was using that tax money to actively suppress and brutalize his people, and he still didn't advocate not paying those taxes. How can any honest person even suggest that he would have opposed using that same tax money to care for the sick and needy.

The requirement for person charity absolutely does not imply a rejection of community charity.

"At no point did Jesus EVER intend charity to be a govt thing... it has always been a PERSONAL choice to give and serve our fellow man.... in fact, taxation is NOT charitable at all in the sight of God." mep

Jesus did not run the government -that was done by an occupying Roman force. Here, now, with a representative government we have the chance to actually live and construct our society by the principles valued by Jesus, and not just with camera wands and gay bashing (which Jesus is not recorded doing btw)

all while businesses see an increase in taxes of... $21... PER YEAR... what a "fair" fix!) junkmail5

$21 per year PER EMPLOYEE on top of what they are already paying into the system.... and you fail to mention NC has one of the most generous UE benefits in the South East. The $2.5 billion dollar debt must be paid back... it was not the fault of the employer... but do we really want them to pay for it all? I mean they ARE the job creators. Seems it was a balanced approach to the problem.

I suppose this will eventually generate false improved unemployment numbers and the Republican Legisltature / McCrory will claim success. I hope the ones to suffer first and the hardest are the same people who voted this clown car into office.

Glad to see the Republicans are doing what we voted them into office to do- saviourfury

Line the pockets of the rich while screwing the poor?

Nice agenda!

(seriously- this takes $200 a week out of the pockets of those struggling, cut off entirely 170,000 people who were getting FEDERAL money (not state), and all while businesses see an increase in taxes of... $21... PER YEAR... what a "fair" fix!)

Glad to see the Republicans are doing what we voted them into office to do. We need to get the state budget under control since the federal gov't has no interest in fixing its spending problems. It's a tough decision to make, but ultimately we have to think about the future and about what kind of state and country we want to leave to our children.

Rebelyell55 Nothing an employer might do to an emplyee in NC is illegal. Well except punch you in the nose. If you have a complaint about age discrimination, that's the EEOC's area. They told me point blank that even if I won I wouldn't get anything except maybe reinstatement.

It would be a true shame for the companies that created the unemployment problem to actually contribute to fixing it. We can't have that. Where would the Reps get their re-election funds?

Unemployment is to help you while you find another job. Its not there to support you while you go to school. I see job postings everyday so they are out there. Seems that most people I hear about decide to wait until the free money runs out before they look for another job. Plus most don't want to give up cable or their cell phone with the data plan. Tighten your belts and take a lower paying job if you can. For every person in dire straights there are no doubt several more milking the system.

A balanced approach to paying back the debt run up by the Democrats.....

You will see through that thin veil that they call being a christian and conservative. Last I checked being a christian in biblical terms means to help thy neighbor and to help and give to your fellow man a hand when in need.

At no point did Jesus EVER intend charity to be a govt thing... it has always been a PERSONAL choice to give and serve our fellow man.... in fact, taxation is NOT charitable at all in the sight of God.

I am a republican and I did vote for my governor, but I am wondering if I made a mistake. I am one of the long-term unemployed who will be affected by the new change. I am currently in school after working all of my life trying to get a degree that I hope will enhance my efforts to find a job. I hope my governor will allow me to come live with him when he cuts off my unemployment in July. I would have thought that finding and bringing jobs in would have been his first priority, before he cut off our survival rope. If there were jobs in my community I would be working, but for every job there are literally hundreds of applicants. What do you think a person's chances are when there are so many applying for the same position? He could've continued our benefits until he made some progress on getting new industry in our area, since we do have one of the highest unemployment rates in NC. Well maybe he will feed me and let me live with him, since I pay for him to have a job.

PACK1223 February 13, 2013 7:10 p.m...................... I'm happy your situation worked out. What is a problem for a lot of it their age. I know this is against the law, but since NC is very lack in enforcement this has happen to many. I do wish that in the future you'll change your voter registration from Republican to independent. No party in power today should be supported by any citizens.

I hope all who are republicans that voted for a republican congress and governor don't ever get sick, lose your job or need help from welfare. When the shoe is on the other foot you will see how much your so called dear elected republican leaders care for you. I hope and pray that you never ever fall on hard times. You will see through that thin veil that they call being a christian and conservative. Last I checked being a christian in biblical terms means to help thy neighbor and to help and give to your fellow man a hand when in need. I'm just saying. You might want to think about whom you elect next time based on facts and not just because they are in a party or side with a particular group of people.

It's ironic, the governor was at a ribbon-cutting for the remodeled and larger homeless shelter in Durham. It will be needed after this governor gets his way with unemployment benefits and medicaid. Meanwhile, the owner of the Panthers is asking tax payers in North Carolina to pay for renovations to the Bank Of America football stadium. Politics in NC gets crazier every year. It's time to toss the governor out before he can do more harm.

Gettin' it done. At a boy Patrick. There is no more free money people.

Dem Days are over.

This saddens me as a Republican and as someone who has had to be on unemployment due to no fault of my own. While on unemployment I applied for several jobs weekly, many times with no response. I am currently working in a position that matches my education and past experience. The unemployment didnt cover all my bills, but helped us to make our mortgage and meet expenses with the help of our savings that we worked hard for. If I would have received a lesser amount, I would have lost my home. I never felt as if I didn't want to work and made finding work my full time job. It took me over 40 weeks to find a job and I am lucky that we made it through this time with the help of a fund I had paid into for years.

"We heard a lot of talk yesterday that we did not care about people," said Sen. Tom Apodaca, R-Henderson, defending the measure. "I think we're all very concerned. We all believe the best thing we can do for someone (who is) unemployed is to find them suitable employments."

A) What Jobs B) If you are so concerned about the debt how about you give up that nice little raise that you got at the first of the year?

This WILL not allow small businesses to open, one Senator from yesterday even said his taxes will go up to $100,000 dollars on his small business. NC does not make it profitable nor does it make it appealing to open a business in NC. The only thing this measure will do is raise the crime rate, cause more businesses to lay off more and other benefits, disability, Medicaid, food stamps will GO UP. Dont give me that line "Oh we care about the people" thats a total load, if you cared you wouldnt have passed such a bad bill. The GOP cant do simple math anyway.

I'm not unemployed and I'm doing well for myself. There is no danger losing my job, but I hate seeing the benefits slashed so harshly for others. I think the weeks needed to be cut because of the abuse. Argue all you want BUT I think there's no excuse for being on unemployment for over 1 year. I've always felt 26 weeks plus one 13 week extension (if needed) should be the max (39 total). I'd like to add that the state could have helped itself out by making sure every company was paying into the U/E fund ...... from what I've read some companies paid nothing. It's time to pay the piper and unfortunately its going to be the ones who can least afford it who will suffer.

Sadly there was a balance approach to this that would still allowed Federal money that the business pays in, yet no NC citizens will get it. What I don't understand is what is the benefits for paying off the debt in three years verses five years? Does that really off set the damage that'll be done to our economy? (except to make some banks a lot of money).

I hate that they are doing this to folks, but if the cons crash the nc economy they will not be returned to office so that would be a gtm!!!

"We heard a lot of talk yesterday that we did not care about people," said Sen. Tom Apodaca, R-Henderson, defending the measure. "I think we're all very concerned. We all believe the best thing we can do for someone (who is) unemployed is to find them suitable employments."

WHERE ARE THE JOBS?????

This reduces the maximum weeks of benefits from 26 to a sliding scale between 12 and 20 weeks.

I know some unemployed GOPers that are going to miss their mortgage. Sad that they are fooled into voting against their best interest.

I am glad to see there are some Democrats in the State Senate that understand we need to get out of debt to the feds and this is a good thing. There will be some pain, but we will survive.

Lot's more people will now have to make their retail purchases at Art Pope's dollah stores..lovely...

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