Atlanta, Ga. - Feb. 23, 2012 - Senate Democrats took GOP members of the Senate to task on cutting the number of weeks that Georgians receiving unemployment benefits can receive benefits.
The Senate voted 34 - 13 to Increase the amount of employee wages that are taxed for unemployment insurance; reduces the maximum number of weeks a claimant may receive benefits from 26 to a sliding scale of 12 to 20 weeks based on the state's unemployment rate and imposed a one-week delay in receiving benefits.
"Amid the worst recession and highest unemployment since the Great Depression, Senate lawmakers voted today to literally take food off the tables of Georgia's working families,"" said Sen. Nan Orrock (D-Atlanta).
SB 447 would reduce Georgia's maximum number of eligible unemployment weeks to the lowest in the U.S.
Georgia has had higher unemployment than the national average for the past seven years. The state unemployment rate has exceeded the national average every year beginning in 2005. Georgia has exceeded the national unemployment average on a monthly basis for the past 54 months.
More than half of all unemployment insurance recipients will lose a week of benefits because of a one-week waiting period imposed under SB 447. That average loss will be $260 each.
"Georgians face greater financial insecurity than people in any other state and most families live paycheck to paycheck with inadequate savings. Waiting periods for unemployment benefits will have harsh consequences," predicted Orrock. "Taking the money from citizens, without asking employers to pay in their fair share, is counter-intuitive. This would remove money from local economies."
Last week, a federal extension of unemployment benefits passed Congress and extended unemployment benefits through 2012. However, that will not prop up Georgia. State cuts would go into effect immediately once the Governor signs the bill.
Federal extended benefits are expected to end for Georgians in May 2012, reducing maximum state and federal benefits to 20 weeks. In September, the federal weeks will drop by an additional six weeks. The federal payments will drop again in December 2012.
If SB 447 goes into effect the number of weeks available to some Georgians would be as few as 12 weeks. By January 2013, Georgia's unemployment maximum would be between 12 and 20 weeks, with no federal benefits.
Georgia is 48th in the nation for unemployment tax rates. Georgia also has a lower federal loan balance per covered employee, a higher Trust Fund balance, and lower benefit averages than any of the states that reduced weeks of unemployment rates in 2011.
Forty-four states provide maximums of 26 weeks. Two states provide maximums of 25 weeks (Ariz. and Ill.). Three states provide maximums of 20 weeks (MO, Miss. and SC). Florida adopted a sliding scale tied to unemployment rates, provides a scale of 12-23 weeks.
"Only one in five people who are out of work receive unemployment benefits in Georgia and half of Georgia's 460,000 unemployed people have been out of work for more than six months. It is unconscionable that we would take this path without also creating a jobs growth strategy to get our citizens back to work. " said Sen. Steve Henson, leader of the Senate Democratic Caucus.
Henson said current state law would correct the debt Georgia owes to federal government for borrowed unemployment funds and allow continued local stimulation.
"Employers will better off in the long run, if we deal with this issue in a constructive way, rather than slashing unemployment benefits while not dealing effectively with our federal loans, " Henson said. "We cannot close our eyes to the workers of Georgia."
Sen. Vincent Fort (D-Atlanta) said Republicans are continuing their blame game of earlier administrations without accepting responsibility for current leadership decisions.
"Some say the cuts to unemployment benefits average only $30 or $40 per week, but that amounts to bags of groceries. These aren't slackers; these are hard working Georgians who showed up and performed their jobs but lost them and should be given the funds from an insurance program they paid into," said Fort.
Employers are currently assessed an unemployment insurance tax on the first $8,500 of each employee's wages. This legislation increases the wage threshold to the first $9,500 starting January 1, 2013.
This legislation extends the suspension of the Statewide Reserve Ratio surcharge through December 31, 2012. Under current law, an individual can collect up to 26 weeks of unemployment benefits, or one-fourth of the base period wages, whichever is less. This legislation reduces the number of weeks from 26 to 12 when the state's average unemployment rate is at or below 5.49 percent. An additional weekly amount is added for each 0.5 percent increment in the state's average unemployment rate; up to a maximum of 20 weeks if the unemployment rate equals or exceeds 9 percent, or one-fourth of the base period wages, whichever is less.
This legislation imposes a one-week delay before an individual may received any unemployment compensation benefits starting on July 1, 2012. The waiting period begins on the first day of the first week in which the individual files a claim.
Democrats offered several amendments to attempt to cure flaws in SB 447, as well as an opinion from Wayne Allen with Georgia's Office of Legislative Council that SB 447 is constitutionally unsound because the bill originated in the wrong chamber. Revenue bills are required by the Georgia Constitution to originate in the House of Representatives. ###
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