Despite the determination of Congress and the Obama administration to quickly pump billions into America's moribund economy, including extended assistance for the millions who have been rendered jobless by the recession, local politics has once again stifled the flow of federal cash into the economies of 23 states where governors and legislatures are refusing to change their unemployment compensation systems so that they qualify to receive the federal cash. A total of $3.1 billion sits in the Treasury vaults in Washington, D.C., when it should be going out to 350,000 needy jobless families who could be using the money to buy food, clothing and back to school purchases for children deprived by parental layoffs.
Dissatisfied that the benefit extension cash is not an unconditional gift to their states, Republicans in 11 states refuse to consider making the legal changes required to qualify for the federal handout. Twelve other states have partially complied with the Congressional requirements, but object to other changes needed to get the cash flowing in their direction. The problem is worst of all in Alabama, Florida, Indiana and Texas, where business taxes will automatically increase when state unemployment benefit funds run out, and local politicians refuse to do what is required to get their share of the Congressional unemployment extension appropriation.
The objections of the states - nearly half of the country - refusing the federal assistance, center around requirements to provide benefits for dependents of the unemployed, benefits for those whose work hours were cut but who were not entirely laid off, benefits for workers in job training programs, or benefits for people who quit work to care for a sick family member or because they fear domestic violence.
The negative results of this local political intransigence is not only denial of extended benefits to people out of work through no fault of their own, but also slowing down economic recovery to the tune of $3.1 billion which would be going directly for consumer purchases rather than into savings accounts, where the people still employed are squirreling away a larger portion of the tax cuts and other stimulus benefits they are receiving as a result of the American Recovery and Reinvestment Act. Seems spending nearly a trillion dollars in a hurry is a much more difficult task than Congress and the Obama administration thought it would be.
Dissatisfied that the benefit extension cash is not an unconditional gift to their states, Republicans in 11 states refuse to consider making the legal changes required to qualify for the federal handout. Twelve other states have partially complied with the Congressional requirements, but object to other changes needed to get the cash flowing in their direction. The problem is worst of all in Alabama, Florida, Indiana and Texas, where business taxes will automatically increase when state unemployment benefit funds run out, and local politicians refuse to do what is required to get their share of the Congressional unemployment extension appropriation.
The objections of the states - nearly half of the country - refusing the federal assistance, center around requirements to provide benefits for dependents of the unemployed, benefits for those whose work hours were cut but who were not entirely laid off, benefits for workers in job training programs, or benefits for people who quit work to care for a sick family member or because they fear domestic violence.
The negative results of this local political intransigence is not only denial of extended benefits to people out of work through no fault of their own, but also slowing down economic recovery to the tune of $3.1 billion which would be going directly for consumer purchases rather than into savings accounts, where the people still employed are squirreling away a larger portion of the tax cuts and other stimulus benefits they are receiving as a result of the American Recovery and Reinvestment Act. Seems spending nearly a trillion dollars in a hurry is a much more difficult task than Congress and the Obama administration thought it would be.
