NC unemployment debt fix backed by House panel

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Submitted: Thu, 01/31/2013 - 6:54pm
Updated: Thu, 01/31/2013 - 6:59pm

Associated Press

RALEIGH, NC (AP) — An unemployment insurance system overhaul for North Carolina has cleared its first hurdle early in the General Assembly as a House committee agreed to changes that would include cutting jobless benefits and raising employee taxes.

The House Finance Committee voted along party lines Thursday to recommend the Republican proposal formed with input from the business community. Business taxes have not kept up with unemployment claims. The state now owes the federal government $2.5 billion.

The bill would reduce maximum weekly benefits by one-third to $350 for the newly unemployed after July 1.

Bill supporters say the measure will accelerate debt repayment and remove an impediment to job creation.

Democrats say the debt solution is skewed against unemployed workers trying to pay bills.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


  • Vog46 says:

    Pats between a rock and a hard spot now.
    Nationally unemployment crept back up to 7.9% – the labor market is treading water or slightly better at best.
    So how does this affect some policies he’s mentioned?
    If he’s thinking the elimination of the corporate tax will create jobs that’s a mistake because product demand creates jobs NOT reductions in taxes. Sure we MIGHT get a relocating company here but even that will be scarce as the move has to be based on continued or expanded demand for product not just taxes.
    Second – his thought process on colleges and universities being funded based upon grads obtaining jobs is almost becoming laughable as jobs aren’t being created fast enough to absorb the number of grads getting out of college. The national jobs picture is of course indicative of NC’s problem.
    Pat is trying to overcome an issue that he has limited control over.
    He’s also using a strategy that many claim will not, and does not work. Reducing taxes does not create jobs they say. But at this point he’s got to give the impression that he’s doing something.
    But if unemployment worsens and the sales tax doesn’t create the revenues needed because peoples disposable incomes will be going down when unemployment gets CUT then he will have worsened his problems. As a mayor he had a much freer reign to go against his party’s thought processes and policies – and he did so successfully in Charlotte. He’s got MUCH bigger benefactors now and a legislature that seems to be more conservative then even he is and he’s got much bigger problems.
    But in seeing what he’s facing and remembering what Perdue DID face 4 years ago at the height of the recession one has to wonder if in fact we were too hard on her.
    We shall see


  • Vog46 says:

    Former Employment Security Chief said this yesterday on a Star News Op Ed piece.

    I questioned Harry about the “debt” and funny we aren’t paying back the Federal Government – we’re paying back our own trust fund:

    “There is a pre-existing debt caused by the state borrowing to pay state benefits (the first 26 weeks, not any of the EUC Federal benefits) because of the depletion of the state trust fund. The extended federal benefits (beyond 26 weeks) are paid entirely by the federal government. The extension this year just approved by the Congress does not add to the state debt at all and those roughly 600 million dollars in aid to NC families and to Nc businesses who struggle does not affect our obligation at all.
    No, it does not add to our debt of the state’s business obligation at. Hard to explain a 70 page bill in 650 words. sorry”

    So persistent unemployment not borrowing from the FEDS has caused a shortage in the trust fund.
    This can be fixed by elimination of the corporate tax – IF you believe that such a thing will CREATE jobs.
    But elimination of he corporate tax makes it easier for corporations to pay for the unemployment shortfall.
    Anyone who suggests that there are jobs out there is being facetious because Bev’s policies certainly didn’t create them.
    And anyone who suggest that we have to pay back extended federal benefits appears to be wrong. We are paying back our own fund which is depleted due to persistent unemployment not entitlement gorging.


  • discoducknc says:

    I just lost my job Jan 11th and just started unemployment last week. Does this bill effect EVERYONE on unemployment or just people that have been on unemployment for a year or more?

  • Candy says:

    Well you should receive your 26 weeks but after July 1st it will no longer offer anything for people after the 26 weeks. No extra 76 weeks that was the extended benefits received in case you don’t find a job after the 26 weeks. The extra 76 weeks stop on July 1st and people will no longer get 26 weeks but 12- 20 weeks depending on our unemployment rate.

  • Vog46 says:

    Everyone I believe


  • Vog46 says:

    I have opined on another blog that the impact of the unemployment bill would be felt first in Bill Rabons Brunswick county district 8.
    With potentially about 600 losing jobs at Dak most likely after July first the hit to Brunswick county will be severe. Like SCT I hope some have early retirement packages etc – BUT – as Tom said this may have been planned for some time making it a Gov Smiley responsibility. Of course if that were true then the early retirement buyouts probably should have been proposed by now.
    But 600 are going to suffer and the ripple afffects across Brunswick will be very bad.
    And now we have sequestration – that glorious set of severe budget cuts developed by our illustrious bipartisan Super Committee of 8 Dems and 8 Republicans. The Dems are making a mountain out of a mole hill IMHO. Supposedly there’s only $85B in cuts this year but over a decade it would be close to $1T. Put it this way it’s $20B MORE than Hurricane Sandy aid. It’s a pimple on an elephants butt compared to our total budget.
    But – it could mean position elimination for some teachers and teachers aids meaning? Well ONLY 16 to 20 weeks of unemployment here in NC.
    The Honorables are now caught between a rock and a hard spot. They are at the mercy of some federal programs laws and bills. So the sequester is NOT their doing – but they are making the after affects worse by the false hand wringing over paying back a no interest loan 2 years early.
    They took a page out of the Democratic handbook by making a crisis out of nothing. The DAK thing was bad enough, the sequester effects will make it slightly worse.
    I wish they had held off on the unemployment revamp for a year and had cut the corporate tax first. That way even these two items would have been mitigated somewhat.
    The GOP is catching a falling knife – one that is getting sharper with each passing week…


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