Thursday, February 26, 2009

Tennessee's Unemployment Rate Takes a Great Leap Forward

Posted by Pete Kotz on Thu, Feb 26, 2009 at 3:13 PM

click to enlarge Are people hurting enough for you yet, Phil?
  • Are people hurting enough for you yet, Phil?
This is not good news: Tennessee's unemployment rate for January jumped by an entire point over the previous month, coming in at a majestic 8.6 percent. To put it in perspective, the state hasn't seen an 8-plus rate since 1986.

So, Governor Bredesen, do you still want to reject that stimulus money for unemployment? Or would you mind getting a little creative here and see what you can do for Tennesseans down on their luck? It won't get you interviewed on Fox News. But when your grandchildren are in college 20 years from now, at least they won't have to study about what a dick you were back in 2009.

Just asking...

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While I am overall in favor of the stuff in the stimulus package, I am sort of impressed by the fact that Bredesen is taking a long hard look at the unemployment assistance. This particular piece of stimulus, it seems, contains a lot of requirements that may actually NOT be a good thing for Tennessee citizens.
Unemployment insurance is paid by employers and is drawn by employees when they are unemployed through NO FAULT OF THEIR OWN. In other words, due to the employer's issues. This is fair, this is not welfare based on how bad off the client is, it is not income based, and is not an entitlement program. No person who qualifies should have any moral qualms about taking unemployment. It is not "welfare" or a handout.
In order to get the stimulus money for the unemployment system, the states must agree to a multiple choice arrangement of changes to the unemployment system. (One from column A and one from Column B )First alternative is that part time workers who are laid off can receive benefits, even if they are only looking for part time work. Not such a big deal. Most part time workers do not have a lot of wages in the pool to draw out and do not get big weekly benefits anyhow. This wouldn't bankrupt the trust fund and wouldn't require a lot of changes. Second choice, people who are in re-training can continue to draw unemployment benefits while in school. The vocational schools are gonna love this one! Because this is a real incentive to get in training and stay in training, and would require a lot more monitoring and oversight by the already overworked state workers. Third choice, dependents allowances for family members. Many states already do this. It could probably be done without a major restructuring.
Making major adjustments in the base period and quarter systems enabling more people to draw is another suggestion. This is something that gets into a creative strain. How much work is enough? How is eligiblity going to be determined? Major remodeling of the state's computers and payment system would be required. At state expense. While they are already serving the masses and far behind, and without extra staff or funding to do it.
And the worst of all, the choice of a provision that people would be eligible to draw if they have quit their job due to the illness of a family member or if they have been the victim of domestic violence. Hello? How in any world is either of these two situations under the control of the employer? How in the world are you going to prove that you are the victim of domestic violence that caused you to have to quit your job? What constitutes it? Verbal abuse, physical abuse, he forbids you to work any more? Hits you? How are you going to get checks if you can't make a job search, are staying in a shelter? Male or female qualify equally?
As for sick family members, I am sure anyone in the world who wants to quit their job and receive unemployment can come up with a sick family member somewhere. Family pet, even? I cared for my mother for years and held down my job. This was in no way my employer's problem, though they were very helpful and considerate with me about using my sick leave and time to care for her, and sometimes, heaven knows, employers are not. But still this would be impossible to document, follow up on, and would place an unnecessary burden on the state system that is supposed to monitor it. Not to mention the employers who would be taxed for it.
This movement away from a fair, monitored employer funded system to "give-away" programs is referred to as "policy drift." Bredesen doesn't want any part of it, and it is NOT a good idea. The people who put this stuff into the stimulus package were obviously looking for a way to help the needy in certain specific cases and have a very limited idea of how unemployment works and why. Boosting the state's trust fund should not come with such poor choices attached. Every state (except maybe Alaska and Nevada and a feww like them) needs some help due to the huge "pig in the python" of unemployed people coming through the system right now. But I agree with Bredesen, not at the expense of the integrity of the state's program, and requiring us to re-do the whole shebang.

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Posted by commentator on 02/26/2009 at 3:41 PM

To commentator:
Bredesen isn't taking a "hard, long look" at anything. He's just acting like Mr. Smarty Pants, as usual.

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Posted by Lars on 02/26/2009 at 3:50 PM

Maybe even in Tennessee reality eventually counts? With more and more employers keeping more and more workers "part-time" or using "consultants and other excuses fr not hiring ever, the definitions of who's an employee and who needs to be covered by the basic short-term safety net has got to evolve. (As does the notion that health insurance comes via h employer--which so many don' have in the older sense either, for being "part-time" and so on.
Having an allegedly "Democratic" governor who's to the right of even most Republican governors on this sort of issue dos not help get the matter to be taken up and dealt with--just snubbed and avoided with a dose of political posturing.

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Posted by barry m on 02/26/2009 at 4:09 PM

If I'm understanding Bredesen correctly, the stimulus package requires states to increase their unemployment benefit levels permanently, but the funding for that increase ends in two years. Right now, the Tennessee Unemployment Fund is almost broke. How can the state afford to keep the increased benefit levels when the federal money runs out?
I don't hear Bredesen saying, "I disagree with increasing unemployment benefits." I hear him saying, "The state may not be able to afford this in the long term." It sounds like responsible management to take a long, hard look at the issue before grabbing the check.
And give Bredesen credit, he won't be in office in two years. He could easily take the money and leave the mess to the next governor. It speaks volumes about his integrity that he's not willing to do that.

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Posted by Morpheus122 on 02/26/2009 at 4:55 PM

The real question is, why is this provision to require a permanent change in state unemployment rules in the so-called "stimulus" bill in the first place?
The spending bill was sold by the Obama administration and the Democrats as something vitally needed to get the economy going again by spending lots of money in the short term (never mind the fact that Keynesian economics has never been proven to have worked anywhere on earth).
This provision has nothing whatsoever to do with that and everything to do with using a claim to be fixing the recession as cover for enacting as much of the liberal democrats pre-existing agenda as possible.
And that is emblematic if what the whole bloated spending bill is really all about.

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Posted by Gilbert Martin on 02/27/2009 at 7:13 AM

To the contrary of what most people are saying, this provision Does not require a permanent change to the state policies. The state changes must only be in place while they are receiving the stimulus unemployment money. The state can do their unemployment any way they want to after that just it has always been. Just afterwards the state must pass a bill to take those benefits back away. Even if the state opted to keep the changes, it would amount to very little increase to to the states current cost which could easily be off set by adjusting the tax the employers pay for unemployment already. It would be only a very small change in that tax. Bredesen has no interest in helping the unemployed in his state. The money the state has nearly used up for unemployment came from employers' tax. Currently the federal government is willing to give the Tennessee unemployed more than the state with 30 weeks extension. All out of pocket with no strings. They have decided that maybe a little push by having provision was the only way to get the states to put out during this economic crisis. Its not a lot that the fed wants done in return. You can sure bet they will take all the handouts that they can get. Bredeson is telling a crap story. TN unemployment comes from the tax that employers in the state pay. TN currently is one of the lowest states in unemployment pay out. He doesnt care one ounce about the unemployed. Nearly all the other states can do it and they pay much much more to each person unemployed. The federal Government is pouring money out trying to get things flowing again. Why can't TN do it? And for people like you gilbert with you "spending bill" attitude- You are right, giving the huge amount of unemployed money or more money so they they can buy things to prevent even more people from loosing their jobs. then trying to create jobs so that the unemployed can have an income as well as create more jobs. Yea I guess to rich or well to do people this is just a waste in "spending bill". Its getting bad man and I do hope that none of you get in the shape i am in. I have been unemployed since last august when our plant shut down and 275 a week was impossible for me and my family. We had to move and barely get the bills payed...Barely. No jobs, nowhere, no this state doesn't care. Maybe Mr bredeson will let us get the foodstamp increase cause really we aint got nothing. I mean if it doesnt put him out or anything

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Posted by Phillip on 03/06/2009 at 2:52 AM

This extra money would give an extra 25.00 on an unemployment check. Its amazing what an extra 25.00 can do for me and my family! I hate to sound that greedy but thats life now days. Im temporarily laid off this comming week and the way the economy is now Im afraid the plant Ive been at for 15 years now is about to close. Stay awake all the time the last few nights worried to death how things will be paid. my top priority is my two kids. as long as they have enough to live im happy. 300.00 aint much but 275.00 is almost impossible!

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Posted by Bob on 03/07/2009 at 8:31 AM

right now me and my husband both are laid off and have been since april of last year. i was able to draw my unemployment but my husband wasn't (and still isn't able). we are trying to make it on 155.00 a week for a family of four, there's no way we can pay our bills and provide finacially for our children.our oldest child has 1 yr left of school what kind of a job is he going to be able to get with none out there? this economy sucks. i worry that i will lose the only vehicle we have running at this time due to the fact of the small amount i recieve on unemployment,i have already had to ask for help paying my electric bill before they came out and cut it off. i don't know how i will be able to pay this bill this month.

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Posted by reba queen on 03/16/2009 at 12:28 AM

I cannot even get through to the unemployment office. I filed 8 weeks ago and still do weekly, but no check, no mail from them at all, and I cannot even get through to them. Any suggestions on that?

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Posted by Don on 03/17/2009 at 8:28 AM

CONTACT YOUR STATE REPRESENTATIVE.
http://www.legislature.state.tn.us
Apparently the republican-controlled house in Tennessee continues to choose to be out of touch with the reality of the hard times in the state. They are arguing over the need to increase the tax to business' to maintain the funding. You need to contact your local Tennessee representative and let them know the urgency of the situation. They are passing the dumbest laws and making that a priority over the Tennessee worker who has became unemployed through no fault of their own, and cannot find work! One republican has even said he wants to wait around and see what other states do. It's very discerning to know most Tennessee officials want to model themselves after how another state would act with this disaster. Espcecially when the democrats have made compromises and proposed a plan already passed in the Tennesse senate. Gov. Bredesen has commented that the cost of approving this plan is far less then allowing them to do nothing and the Feds step in. You can read more about this at thetennessean.com or by just doing a search with Tennessee Unemployment Benefits Extension. After you sort through their easy passage of the previous extension (the 2nd) provided under President Bush you can see how they are playing politics when thousands of Tennesseans are hurting.

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Posted by AJ on 04/30/2009 at 10:14 AM

Between me and my girlfriends we've tried more ways over the years than I can count to maintain healthy skin, including high intensity exercises for sweating, organic foods, different hours of sleep, etc. But, in the most recent months years I've pinned it down to just good natural creams and healthy diet. Why? Because I was happy to discover how effective the results were.

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Posted by Hoyt Hansing on 01/26/2010 at 7:26 PM
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