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20-week extension for jobless benefits headed for a vote this week

Published: Monday, Mar. 23, 2009 - 12:00 am | Page 3A

Richard Cadena, jobless for months, has a four-letter word for any California lawmaker unsure whether to pass or defeat legislation to extend unemployment insurance benefits: pass.

"Anything is a blessing at this point in time," said Cadena, 47, a former auto painter.

Robert Williams, a 36-year-old custodian, said he has hunted for work since December and has submitted a thick stack of job applications.

"Probably 30," he said, anticipating the next question. "Nothing."

The Assembly is expected to vote this week, probably today, on a bill that would pave the way for California to extend its lifeline for out-of-work residents by five months at federal expense.

The measure would ensure an extra $2.5 billion to $3 billion in federal funds for emergency benefits at a time when California is mired in recession, with an unemployment rate above 10 percent.

Passage would mean $6,140 in additional benefits for an out-of-work person receiving the state's average benefit of $307 per week. Benefits range from $65 to $475, based on previous income earned.

In a separate but related issue, the Legislature also is considering permanent changes to eligibility rules that would allow about 26,000 seasonal workers to qualify for unemployment benefits.

Gov. Arnold Schwarzenegger supports both concepts but has not taken a position on specific legislation, aides said.

"I think it would be foolish for us not to take complete advantage of (federal stimulus funds)," said Sen. Mark DeSaulnier, D-Concord.

The extension for longtime recipients is on a fast track. It likely will be reconsidered today after stalling last week in the Assembly, where Democrats failed to win the three GOP votes needed for passage as an urgency statute that would take effect immediately.

Assemblyman Juan Arambula, a Fresno Democrat who has joined with Democratic colleague Joe Coto of San Jose to push both unemployment insurance issues, said negotiations since Monday's session have been promising.

"My belief is that an agreement has been reached," Arambula said, adding the caveat that he can't yet be sure.

"I'm very optimistic," added Assemblyman Martin Garrick, a Solana Beach Republican who serves as vice chairman of the Assembly Insurance Committee.

The legislation, AB 23 X3, would authorize a 20-week extension for Californians who have nearly exhausted the maximum 59 weeks of benefits available now.

The longer benefits could help an estimated 469,000 people by year's end.

Assemblyman Dave Jones, D-Sacramento, said passage would bolster retail sales and small businesses by placing money in the pockets of innocent victims of the recession.

"They're getting laid off," Jones said. "They're not able to find other jobs. They're losing their homes. They're unable to afford the essentials for themselves and their families."

Assembly Republican leader Mike Villines said the GOP also supports giving out-of-work Californians the "extra help they need" but that Democrats played politics with the issue last week.

"California deserves better," he said after the failed vote.

Democrats accused Republicans of insensitivity toward the needy.

"Once again Republicans are standing in the way of providing real help simply to make a political point," Assemblyman John Perez, D-Los Angeles, said minutes after last week's vote.

GOP lawmakers said the bill was rushed to the floor despite their request for more time to ensure that it contained no ambiguities that could obligate the state to continue the emergency extension once federal funds ran out.

Assembly GOP members also had asked before last week's showdown that the 20-week extension be split from the issue of altering eligibility rules for seasonal workers, said Assemblyman Roger Niello, R-Fair Oaks.

The two issues ultimately were severed. The rule changes were amended into SB 3 X3, which required only a simple majority vote. It passed the Assembly, 53-11, and may be acted upon by the Senate this week.

Farmworkers and seasonal workers in the construction, retail and other trades could benefit from the pending rule changes.

State law currently bases eligibility for unemployment benefits on 12 months of income earned, not counting the most recent quarter. The proposed legislation would allow recent wages to be considered.

California would receive about $840 million in federal stimulus funds to help provide the additional benefits, after which its own employer-funded insurance program would pick up the tab.

Even if approved, however, the rule changes would not be enacted quickly.

The Employment Development Department would need two to three years to alter its computers, and gathering data from employers would require 250 more employees and $30 million annually, spokeswoman Loree Levy said.

The California Chamber of Commerce and a coalition of other groups say the rule changes would cost businesses about $70 million annually once the federal funds dry up. They want lawmakers to offset that expense by ordering "administrative efficiencies" to the current system.


Call Jim Sanders, Bee Capitol Bureau, (916) 326-5538.


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