Unemployment reform measure narrowly passes panel

The measure now heads to the House floor.

FRANKFORT, Ky. (KT) – A bill that would index the number of weeks Kentuckians could collect unemployment insurance based on the state’s jobless rate narrowly passed the Senate Economic Development, Tourism and Labor Committee on Tuesday.

House Bill 4 is sponsored by Rep. Russell Webber, R-Shepherdsville, who terms it “a re-employment bill.”

It would reduce from 26 to 24 the total number of weeks someone could collect unemployment, but it could drop to as little as 12 based on the unemployment rate.

He says tying the number of weeks to the jobless rate is currently done in nine states.  It has helped to sustain and solidify the unemployment trust fund in those states. When the economy is good and unemployment is low, the number of weeks are lower.  When the economy is in a more precarious situation, the number of weeks increase.”

Webber says laid-off workers are encouraged to pursue educational programs by providing five additional weeks of unemployment during a training program.

It also includes a work share program, something Webber says is available in 27 states. “The workers continue to work a portion of their hours, and they receive a portion of unemployment benefits. This keeps the workers from being permanently laid-off.”

Kate Shanks with the Kentucky Chamber of Commerce also spoke in favor of the bill. 

“Kentucky has the third-lowest workforce participation in the nation,” she said. “A robust economy is not sustainable when nearly half of the working age population is not working.”

Rev. Dale Raines of the Kentucky Council of Churches said he has grave concerns and opposes the measure. “Are we really willing to sacrifice our neighbors so that some of our corporate neighbors can pay lower wages in order to increase profits?”

Also speaking against the bill was Dustin Pugel, senior policy analyst with the Kentucky Center for Economic Policy.

“If the last two years have taught us anything, it’s that unemployment insurance is already incredibly complicated and hard to get in Kentucky,” he said.  “Even if it cost us nothing, we shouldn’t be pulling the rug out from under laid-off Kentuckians who are getting help while looking for a job. We certainly shouldn’t spend $13 million on it.”

The bill passed 6-4, with Republican Sens. Adrienne Southworth and Phillip Wheeler joining two Democrats in voting no.

“This is kicking someone when they’re down,” Wheeler said.

The measure now heads to the House floor.