03/03/2009 - Accept all U.S. aid for jobless, Hill urges (Louisville Courier-Journal)

Accept all U.S. aid for jobless, Hill urges

Daniels says some has strings attached

By Lesley Stedman Weidenbener
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INDIANAPOLIS - U.S. Rep. Baron Hill said yesterday that Indiana should accept all the federal stimulus money available for unemployment insurance -- even if it means expanding the state's current program.

"I can tell you people are hurting and they need these benefits," Hill, D-9th District, said during a visit to the Statehouse. "The letters and phone calls coming into my office are from people who are desperate and they need help."

Gov. Mitch Daniels said last week he "probably" will decline some of the money the stimulus package makes available for the state's unemployment program because it might make the resulting benefits unsustainable once the federal money is gone.

Already, Indiana's unemployment trust fund is broke and lawmakers are considering whether to raise business taxes, cut worker benefits or do both to put the program in the black. The state is now borrowing from the federal government to make payments to workers.

Daniels, a Republican, said the expansion mandated by the stimulus package would only exacerbate the problem.

"It looks like a very bad fit and a bad bargain for Indiana," Daniels said. "In exchange for short-term money, a state would have to commit itself to very large expansions of benefits and eligibility going forward. Very expensive."

But Hill said the state should "figure out a way to spend all the money we possibly can on unemployment benefits."

Hill's comments came after a speech he made to the Indiana House in which he told lawmakers that confidence and determination are keys to helping the state and nation emerge from the economic downturn.

He told the story of Roger Bannister, the first man to run the mile in less than four minutes. It was a feat once thought to be impossible by doctors, trainers and athletes -- until Bannister did it, Hill said. Once that happened, a surge of other runners were able to beat the time and today runners can do the mile in less than three minutes.

"Confidence is contagious," Hill told the House, where he served for eight years as a state lawmaker and two as chief of staff. "As leaders, we must display resolute confidence that our nation and great state will rebound."

Hill voted for the $787 billion federal stimulus package, which makes money available to schools, provides tax cuts to individuals and gives state and local governments new funding for infrastructure programs.

"Although not perfect, this legislation addresses both our immediate and long-term economic issues," Hill said. "And, it is directed at those who need it most -- hard-working families, not Wall Street, big banks or high-paid executives."

Under the package, Indiana is receiving money to temporarily increase unemployment benefits by $25 a week. That funding carried no strings and Daniels accepted it almost immediately.

But to get an additional pot of unemployment insurance funds, states have to make certain changes. For example, to get one part of the extra funding, Indiana would have to change the way it counts a worker's recent earnings to determine benefit eligibility.

Also, to get additional incentive funding, states have to provide benefits to at least two of five categories of workers, including part-time workers and permanently laid-off workers who need extra benefits to get job training.

"It would probably be a very bad deal for Indiana, leading to very large job-killing taxes on businesses and workers," Daniels said. "Probably, we will respectfully decline."