Veto of jobless benefits bill overridden

Legislators acknowledge court challenge is likely

With one vote to spare, the Senate overrode Gov. Jay Nixon's veto of House Bill 150, outlining regulations to unemployment benefits.

The Senate overrode the veto with a vote of 24-8; 23 votes were necessary.

The bill makes several changes to unemployment compensation, including reducing the maximum number of weeks someone can collect unemployment benefits. Before the bill was overridden, the maximum number of weeks was 20 - six weeks less than the national average, Gov. Jay Nixon pointed out in his veto letter. According to the new law, which goes into effect in 30 days, that number is reduced to 13 weeks as the state's unemployment rate is at 5.8 percent. It also reduces the unemployment benefits for those with severance packages. In order to receive unemployment benefits, people must have lost their jobs "at no fault of their own." The unemployed also must actively seek employment as a condition of receiving benefits.

Sen. Scott Sifton, D-Affton, questioned if the bill, constitutionally, was able to be brought up for a vote Wednesday. During regular session, the House overrode the bill but failed to send it to the Senate. Because the Senate did not receive the bill in a timely manner, Sifton said it is a dead bill. He recognized the procedural issue is "unavoidable," and said it will likely be debated in court.

Sen. Mike Kehoe, R-Jefferson City, spoke in favor of the bill being brought up for vote, stating caucus staff conducted research explaining the legislative power is historically broad and can do what it sees best. He sponsored similar legislation last session.

Once lawmakers finished discussing the bill's constitutionality, Sifton continued speaking out against House Bill 150, but for reasons found within its text. The cut to unemployment benefits, he said, will have a "ripple effect" on the state's economy, causing the unemployed to spend less money and therefore, hurt businesses. The bill, Sifton added, cuts off the unemployed when "it's the hardest to find work." Unemployment benefits are a safety net for those out of work, he said, which the bill damages.

"My worry with House Bill 150 is that it's going to make bad recessions worse," Sifton said.

The unemployment rates stated in the bill represent the average unemployment rate for all of Missouri. State Sen. Jill Schupp, D-Creve Couer, said applying a blanket rate to all citizens is not realistic, as some parts of the state face worse economic struggles than others. While the state average may be 5.8 percent, Schupp said, Dunklin County's rate is 9.5 percent, Ozark County is 9.1 percent and Pemiscot County's is 11.6 percent - all qualifying for 20 weeks of unemployment collected as stipulated in House Bill 150.

Stuart Murray, aide to Rep. Scott Fitzpatrick, the bill's sponsor, told the News Tribune previously the Senate should support the override because "our current unemployment insurance system has failed to adequately meet the needs of Missouri's unemployed workers in each of the last five recessions." He added the state has been forced to borrow funds from the federal government to support the state's unemployment trust fund, which comes with interest.

"When the state carries an outstanding balance with the feds for more than a few years," he said, "all Missouri businesses lose their federal unemployment tax credit to help pay back the difference."

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