Iowa House approves expanded unemployment benefits

Iowa House approves expanded unemployment benefits, sends measure to governor

DES MOINES, Iowa (AP) -- The Iowa House gave final legislative approval Thursday to a measure doubling the length of unemployment benefits for jobless workers enrolled in training programs.
The House sent the measure allowing an extra 26 weeks of payments to Gov. Chet Culver on an 82-13 vote.
"We have to do something to make sure people are trained," said Rep. Wayne Ford, D-Des Moines, the main backer of the measure. "We have more unemployed than ever before and this is the way we can show the world we are going to take care of our people."

Culver has been supportive of the expansion but hasn't commented on the specific plan that moved through the Legislature.
The move will make Iowa eligible for $71 million in federal stimulus money. The federal package sets aside additional money for the states to pay unemployment benefits, but only if they agree to expand those benefits for three years.
In addition to extended benefits for workers in training programs, the Iowa measure offers benefits for some part-time workers and makes it clear that businesses won't be charged when they dismiss workers who were hired to replace someone who was deployed in the National Guard or Reserve.
Under the state's unemployment system, businesses are taxed based on their employment history, and some worried that hiring and then laying off a worker to replace someone who was deployed would add to the burden for businesses.
Supporters of the expansion said it was essential to help people in training programs as the work force meets the challenges of a changing economy.

Critics worried that lawmakers were putting in place a permanent expansion of Iowa's unemployment system. After the three years of federal funding runs out, they said businesses could be on the hook for the expanded program.
"We have no long-term plan," said Rep. Scott Raecker, R-Urbandale. "Once it's gone, where will we find the funds? We are looking at one-time money for an ongoing expense."
Others argued that lawmakers need to revisit the issue of jobless benefits periodically, and there's a breathing room to take another look later.
"That will allow us about three years to work on this," said Rep. Lance Horbach, R-Tama.


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