By Gina Jordan
http://stream.publicbroadcasting.net/production/mp3/wfsu/local-wfsu-956997.mp3
Tallahassee, FL – The Florida House has passed an unemployment compensation bill that lowers taxes for businesses while cutting back on the number of weeks jobless benefits are paid out. Gina Jordan reports the vote came shortly after Florida's unemployment numbers for January were released.
The rate now stands at 11.9 percent, a tenth of a point down from December. Businesses created 84-hundred jobs in Florida in the last year. Governor Rick Scott sees optimism in the business community because of his plans to keep their taxes down and to lift regulatory burdens.
"I'm very happy that it's started going down, but the key is we still have over a million people out of work. And so everyday I'm calling people to try to make sure one, if they're here they stay here and expand and if they're out of this state that they move here."
A bill that's drawn protests is touted as a proposal to keep people out of the unemployment system. It reduces the length of time jobless benefits are paid from 26 weeks to 20 or less depending on the jobless rate. It cuts taxes paid by businesses, gives employers broader ability to fight the claims of fired workers, and requires claimants to undergo a skills review. Reginald Munnings was among protestors at the Capitol who don't like the bill.
"I mean the problem is not going to go away, ya gotta do something. You know, you just can't put people out, ya know? This is gonna create another problem, make things worse that what it is."
The House took up the measure Thursday, with debate limited to thirty minutes for each side. Representative Scott Randolph, an Orlando Democrat, is opposed to the reduction in benefit weeks. The maximum payment is still $275- a-week, but he says the unemployed plow their small checks back into the economy faster than any other group.
"Not only will this bill not create jobs, it will destroy jobs throughout the state. The average small business, which are the true job creators in this state, would barely see a nudge in unemployment taxes. On the other hand, big out of state corporations, many of which have handed out bonuses to millionaire CEO's and are hoarding billions in cash will be able to shift costs to the state of Florida while enriching their shareholders and their CEO's in New York."
Business owners who are facing a threefold increase in unemployment taxes disagree. Representative Ritch Workman, a Melbourne Republican, is a mortgage broker who says high business taxes equal increased layoffs and higher unemployment.
"Our businesses drive an economic recovery. We all know that. This bill takes action now so the window of opportunity to affect those businesses is not lost. Friends, I am a small business owner. I am the middle class. I am not some rich fat cat from Wall Street as was mentioned earlier."
Workman says tax increases for businesses could destroy the fragile economic recovery. But Representative Darryl Rouson, a Democrat from St. Petersburg, called the bill punitive to unemployed people at a time when there are no jobs.
"Good people who want to work cannot find work. We're throwing the baby out with the bath water. Mr. Speaker, the intent behind this bill is good, but the rush to fix the problem of fraud and waste and burden to small businesses should not be hasty."
While the vote came down to party lines, Democrat Joseph Abbruzzo of Wellington praised the bill except for one provision:
"I strongly support eliminating those who are trying to game the system and sit and home and collect hardworking Floridians' tax dollars and paychecks. I am very much for making sure those who have taken from a company by stealing or insubordination do not receive hardworking Floridians' tax dollars. What I cannot support is reducing the benefits from 26 to 20."
The unemployment compensation bill passed the House 81 to 38, with all the Democrats voting against. It still has to be taken up by the Florida Senate.