Here's the conflict: Not everyone who loses a job automatically qualifies for unemployment benefits, but the federal stimulus package gives states a chance to expand eligibility, a move that could help thousands of unemployed Americans weather the recession. The unemployment funds would make it easier for more jobless people to qualify for benefits and draw checks for longer periods, as well as cover laid-off part-time workers. In some states the shift would require changes to state law in order to qualify for the stimulus funds. The handful of Southern governors that have argued against the unemployment funding have said that the aid comes with "too many strings" attached and would hurt employers in the way of higher taxes down the line.
At the political core of the drama, these Southern governors are accused of using federal stimulus money to score big points with GOP fiscal conservatives and to gain clout as up-and-coming leadership in the Republican party (many are seen as possible GOP presidential nominees for 2012). Leading the anti-stimulus campaign during the past few weeks, these governors took to the national stage and airwaves with speeches critical of the economic recovery stimulus package and the president's budget plan.
While these governors received praised from the conservative movement in Washington, the backlash at the local level has been significant. Community leaders and state legislatures have strongly criticized the governors for putting partisan ideology and politics ahead of people's basic needs in a time of economic crisis, particularly in the poverty-stricken South.
These past few weeks have also ushered in heated battles in state legislatures as lawmakers in Alabama, South Carolina, Mississippi and Texas moved to go around their governors and accept the money. We're expected several of these fights to come to a head this month.
Texas
Two weeks ago, the Texas Senate defied Republican Gov. Rick Perry when they voted 19-11 to accept $555 million in federal stimulus aid that would help the state replenish its unemployment compensation fund at a time when money is running short.
Along with the full Senate, a House committee has also approved the unemployment measure, and the bill is expected to get a vote soon by the full House. Support for the bill is considered strong in the Texas House, but there is some urgency in finishing work on the bill before the session ends June 1 in order to give the legislature time to override a possible Perry veto.
Perry hasn't said whether he'll veto the legislation, but he has not wavered in his steadfast opposition either. Even though he has agreed to take almost all of the nearly $17 billion slated for Texas in federal stimulus money, he says there are too many strings attached to the $555 million in unemployment benefits.
But supporters of the unemployment aid argue that businesses will be paying much more for the next few years unless the stimulus money is accepted. They point to the state's almost-depleted trust fund for unemployment benefits, which is projected to be down by $812 million by October, triggering an automatic increase in the tax employers pay.
But that argument doesn't seem to move Perry, who has launched himself into the GOP spotlight these past few weeks by stepping up his criticism of Washington spending. Observers say it is an attempt by Perry to draw in his conservative base as he prepares for his re-election battle with Republican Sen. Kay Bailey Hutchison. Last month Perry even held a press conference supporting a resolution of states' rights and spoke at an Austin "anti-tax" rally, where -- in an address laden with fiery right-wing rhetoric -- Perry suggested that Texans may get so fed up with the federal government they may want to secede from the union.
Tennessee
Democratic Gov. Phil Bredesen of Tennessee has waffled on the unemployment insurance issue. He initially said he would reject the unemployment stimulus funds, complaining that it came with too many strings attached, but then backpedaled after he drew heavy criticism from community leaders and even received a confused call from the White House.
Advocates thought that meant Bredesen and local lawmakers were prepared to accept Tennessee's $141 million to expand benefits for laid-off workers. But that seems to not be the case -- while state officials have decided to accept stimulus money to bolster the unemployment program to some extent, a proposal in the Tennessee legislature would opt out of the two most expensive programs that would help an estimated 15,400 Tennesseans qualify for unemployment pay.
Alabama
In early April, Alabama state lawmakers passed a resolution to take the $99 million in federal money to provide jobless benefits in the state, even though Republican Gov. Bob Riley objected to the aid.
Riley has refused to sign the resolution, saying that the legislature must change state law for Alabama to qualify (the stimulus aid would require a change in state law to make about 20,000 more unemployed people eligible for benefits). Because the legislature hasn't rewritten the law yet, Riley argues that the resolution is meaningless.
Louisiana
Louisiana Republican Gov. Bobby Jindal -- who has became one of the GOP's most prominent voices against the stimulus -- made one of the first announcements in February to reject stimulus aid. Since then he has rejected $98.4 million in federal stimulus money that would expand Louisiana's unemployment compensation program, as well as another $9.5 million in health care spending.
Lawmakers in the Louisiana legislature are still pushing for the state to accept all of the stimulus money for which it is eligible, but Jindal is fighting to make certain that legislation that would reverse his decision regarding unemployment benefits is defeated.
Mississippi
Community advocates have launched an online campaign called "Standing with Mississippi" that includes a petition urging Barbour to change his mind and to accept the $56 million in unemployment insurance benefits, pointing out that the aid could help some 40,000 people get through the recession and generate more than $120 million in economic activity in the state.
South Carolina
The fight between South Carolina's Gov. Mark Sanford and the state legislature over stimulus funds has been one of the most heated and charged standoffs. South Carolina stands to see $2.8 billion from the stimulus law during the next two years, but Sanford, who has been very vocal in his opposition to the stimulus plan, says he won't request $700 million of the aid unless it can be used to offset debt, something the White House says the funds cannot be used for.
South Carolina's Attorney General Henry McMaster issued an opinion in March that the state legislature cannot bypass Sanford to accept the $700 million in federal stimulus money. South Carolina legislators, in response to the news, predicted dire consequences if they have to write a budget without the money, including laying off as many as 3,000 teachers.
In April, the battle over the funds went as far as the South Carolina Supreme Court. Casey Edwards, an 18-year-old senior at Chapin High School in Columbia, S.C., asked the court to allow the legislature to bypass the governor and take the $700 million in budget aid (most of this aid is set to help public schools survive the recession). But the Court ruled that it could not hear the lawsuit, stating that the legislature has to first act to spend the stimulus cash. This left open the possibility of a second court case if lawmakers include the money in the budget.
Supporters of the stimulus aid say things are looking up. The South Carolina Senate voted last week in favor of an amendment that would force the governor to take the stimulus funds. This Thursday the state Senate included the amendment in their $5.7 billion budget they sent on to the House, thus forcing the stimulus issue to the forefront. The amendment requires Sanford to "take all action necessary and required" by the stimulus law to secure funds legislators included in their spending plan. This action means in the coming weeks legislators either will be heading to court for a final decision on who controls the funds or overriding an anticipated veto by Sanford.
Needless to say, the Southern stimulus drama will continue. Stay tuned.




ALL YOU FAT CATS (SOUTHERN GOVORNERS)I WISH THERE WAS SOME WAY THAT YOU ALL CAN ALL FEEL OUR PAIN NOT ABLE TO FIND JOBS AND HAVE A FAMILY TO FEED AND CLOTHED.WE ALL DEPEND ON THESE UNEMPLOYMENT EXTENSIONS TO LIVE AND PROVIDE AS MUCH AS WE CAN.WHO ARE YOU ALL TO SIT BACK IN YOUR FANCY MANSIONS WITH YOUR FAMILIES AND PLAY WITH OUR LIVES WITH YOUR POLITICS,THATS NOT GONNA GET YALL COUNTRY BEHINDS ANYWHERE NEAR THE WHITE HOUSE SO STOP TRYING TO SCORE BROWNIE POINTS. WHEN YOU DO WRONG BY INNOCENT PEOPLE YOU BETTER BELIEVE THE LORD WILL HAVE HIS SAY IN THE END. SO YOU ALL DEBATE ABOUT THAT!!!!!!!!!!!!!!!!!!!!!!!!!!!!
May 29, 2009 2:18 AM | Reply
I just read these two paragraphs from your article from The Institute of Southern Studies, "The Battle Continues Over Unemployment Funds"
Tennessee
Democratic Gov. Phil Bredesen of Tennessee has waffled on the unemployment insurance issue. He initially said he would reject the unemployment stimulus funds, complaining that it came with too many strings attached, but then backpedaled after he drew heavy criticism from community leaders and even received a confused call from the White House.
Advocates thought that meant Bredesen and local lawmakers were prepared to accept Tennessee's $141 million to expand benefits for laid-off workers. But that seems to not be the case -- while state officials have decided to accept stimulus money to bolster the unemployment program to some extent, a proposal in the Tennessee legislature would opt out of the two most expensive programs that would help an estimated 15,400 Tennesseans qualify for unemployment pay.
I am concerned that these state officials and lawmakers do not have everyone's HUMAN interest in their hearts, minds or souls. This is precisly the reason why this country is in the state its in right now; basic human needs and basic human concern is not at the top of these lawmakers priority list. The way to fix everything is to come up with more money, but there never seems to be enough money, mostly because of probably misappropriation of funds, and probably someone silently taking from the "cookie jar" over a period of time using paperwork, unjustified expenses and pretend budget crunching to help someone at the top pockets stay fat, and the rest of us are being challenged by day to day flat-pocket survival. Greed and Game Playing are at the top of the list. People got more game that toy manufacturers these days.
Now, having said that, my complaint is that while others, thank God, are receving unemployment compensation and extended unemployment compensation, there is a segment of society who are not to receive unemployment, because some heartless, not so-human lawmakers determined it that way, as they saw it way back when. Well, as most things are changing in this day and time, I think the lawmakers need to go back to the policy board and determine why, and FIX why subsitute teachers, custodial workers, etc., cannot collect unemployment.
They say it is because we are promised a job again when school starts. I am not impressed!!!!!!!!!!! What about the time from May to September if no other jobs are available????? I don't have a hefty bank account lawmakers!!!!!!!!!
For six years, I have struggled in Memphis having 30 years secretarial/administrative assistant, computer literate with good writing skills and excellent communication. I have struggled to find work in this city in an office environment because I am being pigeon-holed as a substitute teacher which is what I have done for 6 years. The problem with the substituting is that the STATE laws say I cannot collect unemployment. So, from May 22 until a teacher decides to take off sometime in September or October, what is suppose to happen to my livlihood? There needs to be a "special circumstance" clause or some re-writing of this law that gives everyone a chance to at least pay rent, buy food and pay electric.
I lived in LA 17 years and always had work. I lived in Atlanta 8 years and always had work. Then, I came to Memphis in 2003.
You may write me because I am willing to hear suggesstions on how to recover and restore a person's desire to make/earn an living in this city. If there are no available job opportunities yet, OPEN A DOOR for me to survive. I am trying to revamp my thinking that Memphis is not as bad I think it appears.
June 26, 2009 11:51 AM | Reply
This link will help you locate your rep and send a letter urging them to push forward for the federal extension of unemployment benefits which Alabama (and other states) is currently available for but have not accepted http://www.nelp.org/page/speakout/EB324
July 1, 2009 12:34 PM | Reply
UNEMPLOYMENT IS AT ALL TIME HIGH EVEN HIGHER THAT EVER PROABLY ,OUR GOVERNMENT , NEED TO HELP THE PEOPLE .NOT THE GOVERNMENT IT SELF , IF WE'RE ALL EQUAL THEN THEN WHY ARE APRESSED EVEN TODAY , MY FELLOW MAN WOULD RIDE BY ME AN LAUGH , BUT WE SURPOSE TO BE THE BEST COUNTRY ON THIS PLANET , I THINK THE LEVEL OF GREED NEED TO STOP , OUR GOVERNMENT MAKE WAR WITH OTHER COUNTRIES , BUT CAN'T KEEP IT'S OWN , IF WE PAY TAXES
July 26, 2009 3:14 PM | Reply