FRANKFORT, Ky. — Supporters of a bill to cut unemployment benefits moved a step closer to seeing their bill become law.
What You Need To Know
- House Bill 4 would cut unemployment benefits and tie the benefits to the state’s unemployment rate
- After clearing the House in February, a Senate committee approved it 6-4 on Tuesday
- Two Republicans and two Democrats voted against the measure
The Senate Economic Development, Tourism, and Labor Committee passed House Bill 4 by a 6-4 vote, a close vote where two Republicans joined Democrats in voting against the unemployment reform package.
“This is a terrible bill, and I cannot support it under any circumstances,” Sen. Phillip Wheeler (R-Pikeville) said.
Wheeler said the bill only hurts people who have actually worked to put money into the system.
“To kick them while they’re down is simply inhumane and I will not be a part of it,” he said.
The bill cuts benefits, depending on where the unemployment rate is at the time.
Current benefits last 26 weeks, and under House Bill 4, benefits would last anyone where from 12 to 24 weeks, depending on how bad unemployment is.
It also increases work search requirements, scales benefits back after six weeks, reduces unemployment taxes on businesses, and extends benefits to people who go through a job training program.
Rep. Russell Webber (R-Shepherdsville) said it’s designed to push people back into the workforce.
“House Bill 4 is a re-employment bill,” he told the committee on Tuesday.
Kate Shanks with the Kentucky Chamber of Commerce said it’ll help employers fill open jobs.
“We know that people tend to look for work more intensely when their benefits are going to run out,” she said.
Several unions, including the AFL-CIO, oppose the measure.
“Cutting unemployment insurance benefits solves none of the labor force participation issues and without a doubt will put more pressure on those laid off through no fault of their own,” Kentucky AFL-CIO president Bill Londrigan said.
The bill is a priority for several Republican leaders who say they want to shore up the unemployment system.
“I know that it’s not 100% popular, but I think sometimes you have to have some tough love,” Sen. Robby Mills (R-Henderson) said. “And I think that’s what this is to get Kentucky to the next level.”
Sen. Adrienne Southworth (R-Lawrenceburg) was the other Republican who voted against the bill in committee. The panels two Democrats, Sen. Reggie Thomas (D-Lexington) and Sen. David Yates (D-Louisville) also voted against it.
“This is taking the screws to our working people,” Yates said. “The people who work day-in and day-out, and through no fault of their own have been laid off.”
The full Senate could take up this bill as early as Wednesday, and because the bill was amended in this committee, it also has to go back to the House.