Topeka — Facing the largest jobless rate in more than a quarter of a century, Democratic legislators on Monday called for changes to the unemployment compensation law that will net the state $69 million in federal stimulus funds.
House Minority Leader Paul Davis, D-Lawrence, called the required changes to draw down federal funds a “no-brainer” that will help Kansans who are out of work and businesses that pay into the unemployment insurance trust fund.
Under the American Recovery and Reinvestment Act, Kansas stands to gain $69 million for its unemployment trust fund if it codifies three provisions.
One requirement to get the funding is that Kansas must institute an alternative wage base period that would help more people qualify for unemployment compensation benefits.
Under another requirement, the federal law provides several other options to draw down funding, but the one that has gained traction in Kansas is extending unemployment benefits to people in state-approved workforce training programs.
In addition, the federal law requires that benefits must be provided to workers seeking part-time employment, which has been the long-standing practice in Kansas, but hasn’t yet been officially written into state law.
When lawmakers return to the Statehouse on Wednesday for their wrap-up legislative session, they will consider the changes.
The state’s unemployment rate for March was 6.5 percent, the highest in 26 years. As of last week, there were 41,029 people receiving unemployment benefits in Kansas. The average weekly benefit was $356, while the maximum benefit amount is $448 per week.
Democratic lawmakers, including state Sen. Tom Holland of Baldwin City and Senate Minority Leader Anthony Hensley of Topeka, said the proposed changes would help not only unemployed workers but businesses as well by shoring up the unemployment trust fund, which is funded by employers.
But the Kansas Chamber of Commerce has testified that some of the proposed changes would hurt business by placing “undue pressure on the solvency of the trust fund during a time when the economy is already unstable.”
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