RSSUnemployment insurance deal too good to refuse
Yakima Herald-Republic editorial board
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This editorial appeared in the April 15, 2009, Yakima Herald-Republic.
House lawmakers should have recalled the famous line from "The Godfather" movie about a deal they couldn't refuse.
But that famous line is not in play these days in Olympia. What's happening is more like the final scenes from the "Titanic."
Last Friday, House lawmakers shredded a Senate-brokered deal that would have brought stability and predictability to our state unemployment insurance program. The compromise legislation had brought together the diverse interests of Boeing, retail merchants and the Washington Farm Bureau in what appeared to be a breakthrough that would put this state's jobless program back in compliance with the federal government.
But on a 53-45 vote, the House fiddled with the measure, increasing the rates paid by businesses and allowing more freedom for workers who quit their jobs to collect unemployment benefits. Senate Bill 5963 now heads back to the Senate for action.
The Senate compromise involved a complex rate restructuring that, in essence, would reduce the trust fund that had grown far beyond what is necessary to cover benefits. The reduction would amount to $13 million in tax cuts to employers in 2010.
However, let's not forget that lawmakers had earlier taken $214 million from that fund and given it to workers in increased benefits for an additional eight months that will begin in May.
Without question, reforming the system is necessary. Right now, businesses in the state pay the sixth highest in unemployment insurance taxes and are the fifth highest with respect to doling out benefits. These rankings do not bode well for attracting and keeping businesses here in the state. And that doesn't even take into account another disincentive for business -- our gross receipts tax that companies have to pay even before they turn a profit.
Imagine if this state lost Boeing. The aerospace giant accounts for more than 375,000 jobs across Washington.
The improved rating system included in the Senate bill would help keep Boeing here and also serve as a bonus to small mom-and-pop operations, which are key to creating new jobs in the months ahead. It establishes a sustainable trust fund reserve and would automatically increase employer taxes that feed into it.
The Senate plan also would cap and make spermanent the rate for agriculture, a huge savings for the industry that has always had a roller-coaster ride with its jobless benefits due to the nature of its seasonal work force. Agriculture suddenly found itself arm in arm with manufacturing giants like Boeing. It's a coalition that few thought possible.
That's another reason why this Senate deal is too good to pass up. It's not too late to restore what Senate lawmakers had pieced together.
* Members of the Yakima Herald-Republic editorial board are Michael Shepard, Bob Crider, Barbara Serrano, Spencer Hatton and Karen Troianello.
You guys are right on the money in this editorial. This proves to me that the west-side lawmakers, who often exercise their lynch-mob mentality against business, are being typically and predictably short-sighted to the max. They seem to have the Union mentality that seeks higher wages and benefits, even though it might put their employers out of business completely. Then, they have no jobs at all.
It seems that Liberal lawmakers are frothing at the mouth to get even with those evil Republicans, (they were NOT conservatives, by the way) and show them who is boss, devil take the consequences.
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