House votes down $125 million in U.S. stimulus funds
Capitol Talk
The General Assembly met for a day to vote on vetoes and amendments by the governor. Watch a video analysis by our political team.
BOB BROWN/TIMES-DISPATCH
Gov. Timothy M. Kaine was angry and red-faced about the House vote to turn down $125 million in federal economic-stimulus money for unemployment benefits.
Published: April 9, 2009
Updated: April 10, 2009
SLIDESHOW: Virginia Assembly Annual Veto Session
Kaine criticizes House GOP for spurning jobless benefits
Republican lawmakers yesterday narrowly blocked a proposal by Gov. Timothy M. Kaine to boost jobless pay for thousands of Virginians idled by the recession, possibly handing Democrats a potent issue for the approaching gubernatorial and legislative elections.
The GOP-controlled House of Delegates voted 53-46 to turn down $125 million to finance expanded unemployment benefits from President Barack Obama's economic-stimulus package. Virginia becomes one of the first states to reject such aid.
"I just can't imagine why we would leave $125 million . . . on the table," an angry and red-faced Kaine told legislative leaders in a conference room adjacent to his office at the Capitol.
"This was not about [saying no to] the federal government. This was not about an ideological battle with some distant foe. This is about looking into the eyes of Virginians who have lost their jobs."
With 300,000 Virginians out of work and the jobless rate approaching 7 percent, the federal funds would have extended benefits to unemployed part-time workers and those not working but training for other positions.
House Republicans and business groups said the proposed changes in state law would have left mandates on businesses in place after the federal stimulus money is gone.
"This is a defining moment," said House Minority Leader Ward L. Armstrong, D-Henry, alluding to the potential appeal of the benefits issue as a vote-turner in November contests for governor and the House. "But this is not a fork in the road when you choose business on one side and employees on the other side."
Democrats are angling for a third straight gubernatorial win and hope to take back the House, the last redoubt of Republican power at the Capitol. The GOP has a six-seat majority.
Republicans acknowledged hard economic times, but -- echoing objections from the business lobby that heavily finances candidates in both parties -- said the measure ultimately could push up the operating costs of business. They said that could happen, in particular, by triggering higher taxes to keep solvent the fund from which jobless checks are drawn.
Del. Christopher B. Saxman, R-Staunton, said his family-run bottled-water business has lost 500 accounts in the past six months and has had to dismiss veteran employees. But he urged the House to defy Washington, saying, "It is very difficult to do more work when you tax me more."
The House vote was almost entirely along party lines. Fifty-two Republicans, joined by one Democrat, Joseph P. Johnson Jr. of Washington County, opposed the Kaine measure. Daniel W. Marshall III and Donald W. Merricks, Republicans from Danville and Pittsylvania County in hard-pressed Southside Virginia -- where unemployment in some areas hovers around 20 percent -- joined 44 Democrats in backing Kaine.
Today Kaine is scheduled to visit Martinsville, where the February unemployment rate was 20.2 percent.
The Virginia Senate, with a slender Democratic majority, had sided with the governor on a 21-19 vote.
Senate Minority Leader Thomas K. Norment Jr. of James City County, whose district includes Williamsburg, a tourist destination with a 19.5 percent unemployment rate, said the Kaine measure could discourage the jobless from returning to work by freeing them to reject positions they deemed unappealing.
"This is absolutely ludicrous," Norment said. "It is a disincentive."
Kaine, a political confidante of Obama, who picked him to run the Democratic National Committee, prevailed on two other job-related measures, both temporary in their duration: a 13-week extension of jobless pay; and protections for the health insurance of some laid-off part-time employees.
Those initiatives, backed by Republicans and favored by the corporate and professional community, will be bankrolled by stimulus funds.
Contact Tyler Whitley at (804) 649-6780 or
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Contact Jeff E. Schapiro at (804) 649-6814 or .
Staff writer Jim Nolan contributed to this report.
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Reader Reactions
this country is in trouble they are giving these auto makers millions and taxen cigs. but yet they are worried about giving the working man who has a family nothing at all in the stimulus package what a joke where did the money go they gave them allready in the ceos pension fund they need to give all americans a 100 thousand so people can make their house payments and the ones that are homeless set up an account and make them use it to buy a house this would be alot cheaper than what they are doing know
I think it is pretty easy for people to sit high and mighty when they have a job.
My husband was laid off from his job last week. His industry is not hiring at all. He has worked in the field he is in for 12 years.
He made amazing money. Now we are faced with living off my sad income while he tries to find a job.I have a degree and cannot fine a job in my industry.
He did not deserve this. He is now looking at finding a job in an industry that is not hiring.
He wants to work more than anything. His career was his life and loved what he did.
The Republicans are going to lose big if they do not set their politics aside and think about what is best for the people who employ them.
This money is not a hand out. It is hope that if everything fails, you have more time.
Jer, that’s great. You routed me. All that talk about my blaming one side was bang on. Glad you enlightened all of us about how the Republicans are to blame for this matter as well. Oh wait, you didn’t. Way to go. How black is the pot Kettle?
Also, notice how you forgot to mention Smirking Chimp Bush pushing TARP through Congress in record time. The same way he rushed through the mis-named Patriot Act.
Both of which were approved with a Democratic congress in control. Where were all the Democrats that were trying to stop either on. Again nowhere to be found.
Let’s also talk about how our Republican (mis)Leader handed Colin Powell “misinformation” to coerce Congress into invading Iraq. WMD’s? Found’em yet?
Is this the same presentation to the UN that was backed up by Russia, China , Great Britain and all theoother major countries of the world?
The list..it goes on and on.
But we’re talking about how VA Republicans took a moral stand all while the Republicans and their big corporation buddies have jobs. While the jobless are left to fend for themselves.
Show me how many of the jobless are dying in the streets? Not getting health care now? The money they get is much more than many of us working people get to feed our families.
I bet the Federal Government remembers how we didn’t take the money given to us and will cut us a break on our deficit payments. What are you talking about now??
Nah, we’ll still pay the same amount as states who took the money. I’m glad food and rent can be paid with high moral ideas!
No but good ahrd work and budgeting what you have will. That should see VA through the current economy.
The only way this country will strive to be the best it can be is to get the government off the backs of the common person and let us produce and live to the best of our abilities. Any government program that takes from these people to give to others is holding this country back. As I have said before Motley Fool you and some of your friends need to get out more and see what the real world is like instead of hiding and listening to MR Obama spout his retoric.
Eleazar, you make an excellent and intelligent point….HOWEVER…there are a few areas that i have to mention. while people should prepare or have a contingency fund, a lot of these people have already exhausted these funds….this economic ‘crisis’ didn’t just start at the beginning of the new presidential administration. it has been a gradual process: think about it, history has shown during wartime efforts that the economy thrives, jobs are produced in an effort to support our troops, but that hasn’t happened. instead the federal government threw money away on their interests, and these ‘interests’ were not for the american people as a whole. schools were given money to raise their sol scores in the public sector,but kids didnt learn. gas prices? lol..do we really want to go there? the gas prices were skyrocketed,but now? they are less than half of what is was a year ago. the economy is bad,but all of a sudden, gas is cheaper? enuff of that lol. as far as people doing the ‘responsible’ thing, once again, a lot of people have exhausted their 401k’s, their savings, their iras, they are simply broke. and a lot of these companies that were getting fed like fat rats during the past administration, getting ‘tax’ breaks at the sake of american employees. you mentioned a lot of these people that worked in the private sector to work in the public sector, but it has been a little over a year and the state’s IT department had been outsourced and eliminated.. i really think that you have valid points,but….right now a lot of people simply aren’t being realistic: look around you, this isnt the most cheerful of times in our country: 9 different cases in which over 59 people were killed. the ‘haves’ have been gettin ‘theirs’ for quite some time now..something has gotta give.
And common sense be damned along with it.
The halos and horns philosophy wears blinders.
Well, we certainly wouldn’t want to impose anything that might become a burden on businesses, do we?
Curses upon those Evil Democrats for their Evil Attempt to Help Unemployed Virginians! The audacity of it all!! It must be <gasp!> SOCIALISM <shriek!> that they seek to wreak upon us!!!
We certainly don’t want to extend a hand to part-time workers, do we? Similarly, there should be no assistance for those who have been laid off and who seek training to move into fields where they might be employable.
Nope. Not on your life. Not us. Thank God there are Republicans out there who are eager to help the business lobbies and their clients. Clients who need to layoff their workers because of bottom-line considerations. Employers who have bought into the concept that staff are more resources or assets than people, and are expendable.
Yes, participate in “tea parties” to protest the federal government’s intrusive intervention through the various economic stimuli projects. Damn the Democrats for attempting to pull the economy out of depression. Damn the Democrats for trying to create jobs during the depression. Damn the Democrats for trying to shore up and clean up the mess left behind by (oops!) Republicans.
Damn it all, anyway.
Blackbeered and superdave-have written posts that combined spell out excellent explanations and perhaps even a solution.
Unfortunately and very humanly people personalize these issues.
it is very difficult or near Impossible to recognize the shortsighted aspects of this bill when your family is in need.
There are so many different scenarios right now of people in the same position. Long time malingers who have been gaming the system for years lumped with citizens who have never been out of work.
Drifters whose working careers have consisted of going from one job to another. Citizens who have been in the same jobs for decades.
It is not difficult to decide who DESERVES this assistance.
How to do it is the problem. Perhaps if the bill was enacted on a temporary basis? A time frame. No strings.
There already is a “once in five years” payment of a little over a thousand dollars paid to citizens to “tide” them over a “rough patch.“
That has just been enacted to be paid out every year.
The added problem in my opinion is the callous pandering of a governor (who knows full well the implications of this bill which Virginians will be paying the tab for long after he is gone) who is feathering his legacy nest.
This is another shortsighted feel good
redistribution plan where as much of and perhaps more of the money will go to people who have never earned it and do not deserve it.
I like Eleazar’s idea of employing the unemployed at a governmental level. They could work for the added benefits.
I also tink Eleazar has a good point about the benefits. Why not just hand over the cash without the mandate of ensuring benefits after the funding runs out?
datony, businesses are not jobs programs; they exist to deliver goods and services and make profits for their owners. When the public is not buying those goods and services, businesses have to cut their costs or they fail. One of the biggest costs for a business is staff. True, businesses own some loyalty and care for their employees, but if it comes down to reducing staff or shuttering the business in these difficult times (dire really is over the top) responsible business owners have to do what is best for the whole organization.
No where, in any of these posts, have I seen anything about an individual’s responsibility to prepare for the potential that they might lose their job. As long as a person is an employee, (and therefore not completely in control of their destiny) he/she should do the responsible thing and keep a reserve fund against economic hard times.
At the same time, I am disgusted that some posters on this site have called the unemployed “lazy.“ That’s also over the top and shows a complete lack of humanity.
One final point, rather than paying people who are not working, I think that the government should bring unemployed people on to the payroll temporarily and let them do the work that otherwise wouldn’t get done because of budget cutbacks. As a state employee, I can tell you that government has a need for virtually every profession. Employing people who are out of private sector work temporarily would have a number of benefits: it gets work done, gives the person the dignity of having a job to go to, gives the government value for the money it pays out in “unemployment benefits” and keeps money moving in the economy.
i’ve noticed that quite a few people believe that this plan is basically giving people money to ‘not work’, but you have to realize that these are truly dire times. we’re not talking about those individuals that are working just for the sake of doing so and go from job to job,month to month. we are talking about people that have worked for corporations for YEARS. i think that it is truly sad when big businesses have had the audacity and gall to just treat american people like they are fodder. just take the money already.
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