February 9, 2010 – “UMA on the Hill”
The House has passed a bill recommended by the State Unemployment Advisory Council that enhances the state's unemployment benefits, extending payments to 1,700 out-of-work residents.
If approved by the Senate, it would be paid for by tapping into $20 million in federal stimulus money that the state would not get unless it makes the adjustments.
Sponsor Rep. Steve Mascaro, R-West Jordan, said HB18 allows the state to modernize the formula it uses to determine who qualifies for benefits. The money will last up to eight years, at which point, he said, the state can change its law back. Critics of the measure argue Utah should not be too quick to tap federal money and just hold the line on additional spending for enhanced benefits.
The Advisory Council, of which UMA President Tom Bingham is a member, reviewed the proposal and approved moving forward with HB-18 because it is a minor change in benefits that are paid by federal money and can be rescinded when the funding runs out. The same council rejected an additional $40 million offered Utah because to receive them Utah would have to implement additional enhanced benefits that would be very difficult to rescind later. The impact long term would be to add additional tax burdens of employers.
The bill passed the House 46-28 and now moves to the Senate.
Another UI bill to be considered this session addresses social security offsets to UI benefits.
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