Battle continues in Va. over unemployment stimulus money

By: Jeff Schapiro | Richmond Times-Dispatch
Published: April 07, 2009

The shootout over Gov. Timothy M. Kaine’s proposal to boost unemployment benefits is continuing today between advocates for the jobless and the business lobby.
The Virginia Interfaith Center and its economic think-tank, the Commonwealth Institute, are urging the General Assembly to accept $125 million in federal aid for additional jobless benefits.
They say the money is necessary to help the unemployed and pump cash into the recession-idled economy. The latest jobless figure for Virginia is 6.7 percent.
The Virginia Chamber of Commerce, the National Federation of Independent Business and the Virginia Retail Merchants Association oppose the handout under President Barack Obama’s fiscal stimulus program.
The groups say the money will lead to a permanent increase in unemployment pay — something neither the state nor business can afford. They’re warning of higher taxes for business next year to keep the unemployment insurance fund solvent.
The proposed benefits increase comes up tomorrow in the General Assembly. Lawmakers are returning to Richmond to put finishing touches on legislation passed this winter.
The chamber of commerce, NFIB and VRMA say they support some improved, but temporary, benefits for the jobless. This includes a 26-week extension in cash payments and help for the unemployment to pay their health insurance.
Most Republicans are lining up with business, but some — particularly those from areas with high unemployment rates — are expected to side with Democrat Kaine.
Another big issue for business is expected to flare again next week.
That’s when business groups from across the state meet in Richmond Tuesday to press their opposition to a federal measure that, they fear, will make it easier to unionize the workplace.
The primary target of business organizations: freshman Sen. Mark R. Warner, D-Va., one of a handful of undecided senators on the so-called card-check legislation.
The state’s other senator, Democrat Jim Webb, supports the bill.