Legislators hear from foes of bill to cut jobless aid

Struggling workers hit upon again, one tells black caucus

Members of the Legislative Black Caucus heard Monday from opponents of proposed legislation that would cut unemployment benefits for out-of-work Arkansans.

House Bill 1489 by Rep. Lane Jean, R-Magnolia, would reduce the number of weeks people can receive unemployment from 25 weeks to 20 weeks, as well as cut the average weekly benefit amount. The bill, which was co-sponsored by Sens. Jim Hendren, R-Sulphur Springs, and Bart Hester, R-Cave Springs, has been assigned to the House Revenue and Taxation Committee.

Jean did not return calls for comment on the bill Monday.

Alan Hughes, the president of the Arkansas chapter of the American Federation of Labor and Congress of Industrial Organizations, told the caucus that his union is working on an informational packet on the effects the cuts would have on unemployed Arkansans.

"It's cutting $20 a week from unemployment checks," Hughes said, adding that this is just the latest cut lawmakers have made to those benefits. "Unemployed workers and their families have already taken this lick once. ... I ask you, how much is enough? How much do workers have to give? Unemployed workers are struggling. This is paying to help them, to keep the economy going. What they're taking out will take a lot more out of the economy because the next thing you know, you're taking groceries off the table."

But supporters of the bill say that it's necessary to keep Arkansas' unemployment insurance fund above water. They also say Arkansas is out of step with surrounding states that offer less in unemployment benefits to their residents.

"I think it's safe to say that people would rather have jobs than more benefits when they don't have a job," Hester said Monday.

Hester previously sponsored legislation in 2013 that would have cut the weekly maximum unemployment benefit from $451 to $325. That bill would have maintained the minimum weekly payment of $81 but would have cut the payment to all others receiving unemployment by 10 percent.

The legislation passed through the Republican-controlled Senate but failed to make it out of the House Public Health, Welfare and Labor Committee, where Republicans and Democrats were evenly matched.

Unlike previous legislation, HB1489, which has been mentioned as part of the Republican Party platform for this session, was assigned to the majority-Republican House Revenue and Taxation Committee.

Rep. Ken Bragg, R-Sheridan, House majority leader, said unemployment benefits became part of the party's agenda for the session because the state had borrowed money from the federal government for those benefits during the recession.

That $360 million debt was paid off in November, but Bragg and others said they don't want the state to get into a similar situation again.

"Arkansas has some of the lowest wages and highest unemployment benefits paid out ... so we're trying to bring that down to be in line with other states," Bragg said.

Bragg noted in previous interviews that the average unemployment benefit in Arkansas is $289.75 per week, and the median of other surrounding states is $245.59.

Hester said the significant difference between his 2013 legislation and HB1489 is that the current legislation cuts the weeks that people can receive benefits.

"We would rather everyone have a little bit and have it be there when you need it than a whole lot and then the system goes bankrupt," he said.

"This decreases the amount of weeks that you can receive benefits. There's no greater motivation to get a job than when your benefits run out."

But opponents of the bill say the cost of living is climbing and it's counterproductive to slash aid.

"Try to live on unemployment knowing the things you face. There's just no possible way," Hughes said.

"Tell me, what's gone down [in costs] to where it's made their lives easier? Last time I looked, a loaf of bread hadn't gone down. A gallon of milk hasn't gone down. The electric bill hasn't gone down. The cost of gas, thank the Lord right now, but it's going to come back up."

Metro on 03/03/2015

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