Plan for jobless benefits advances

CARSON CITY -- The Assembly Ways and Means Committee voted unanimously Monday for two measures that allow lawmakers to accept federal stimulus funds for jobless benefits -- despite earlier concerns by Gov. Jim Gibbons.

At stake is $200 million in federal funds to extend the number of weeks that those already on the jobless rolls can get unemployment checks; and another $77 million to pay for additional people on the rolls.

Nevada's unemployment rate rose to 10.1 percent in February. The rate has increased every month since the start of the national recession in December 2007.

"I can't imagine how we would not do this for our constituents," Assemblywoman Debbie Smith, D-Sparks, said during the committee's discussion of AB469 and ACR17, which now move to the full Assembly.

Gibbons has said that he would accept the $200 million but might reject the $77 million because it would commit Nevada to increased spending or expanded programs. A spokesman for the governor said Monday no decision had been made.

By accepting the funds, the state would have to change its qualification rules for unemployment claims, which Gibbons has said would "cause higher unemployment insurance taxes on Nevada businesses in the future."

Assemblyman Marcus Conklin, D-Las Vegas, said expanding the pool of qualified claimants without the federal stimulus money would probably require an increase in an unemployment tax rate paid by employers from 1.33 percent to 1.38 percent.

But with the federal stimulus money, Conklin said the state could expand the claimant pool without raising the tax rate. After the federal money runs out, the law could be changed so that the claimant pool returns to where it is now, lawmakers said.

The federal Department of Labor issued a letter last week that says states may change the stimulus provisions in the future and not be required to return any of the payments.

Assembly Speaker Barbara Buckley, D-Las Vegas, said accepting the money would lengthen the time the state could use the unemployment funds without resorting to a federal loan.

"It may save us down the road the 5 percent interest that is charged by the federal government," Buckley said.

AB469 would make statutory changes needed so Nevada could access $77 million in unemployment funding available to an estimated 4,100 unemployed Nevadans through the federal economic recovery package.

ACR17 establishes that the state will accept all federal funding available to help the jobless.