Issues

State and Local Government Stimulus Package, Unemployment Extensions Badly Needed

Overview

Public sector workers throughout the nation are suffering greatly as a result of the recession. State and local government coffers are facing huge shortfalls due to decreased revenue coupled with a higher demand for government services. Congress is to be commended for granting States and Localities some fiscal relief in 2009 with the passage of the American Recovery and Reinvestment Act (ARRA), as well as passing the $26.1 billion FMAP/School Aid bill in August, 2010. However, much more needs to be done. Unemployment continues to hover at 9.6%, with underemployment at 16.7%, meaning that State services are facing huge demand to provide services.

Unfinished Business by Congress

• Long Term Unemployment: Congress should extend long-term unemployment well into 2011 (currently extended to November 30, 2010)
• The 99ers: Congress should extend unemployment for the ‘99ers’, or those unemployed Americans who have exhausted the 99 weeks of maximum allowable unemployment benefit. There are two bills, one in the House and one in the Senate that will fix this injustice. The 99er unemployment extension bills are S. 3706, The Americans Want to Work Act (Sen. Stabenow) and HR 3404, the Emergency Unemployment Compensation Extension Act (Rep. McDermott).
• Stimulus for State and Local Governments: Congress should act before the end of 2010 to pass a comprehensive State and Local government stimulus package.

IFPTE Legislative Request: IFPTE Urges that, (1) Congress pass a long term unemployment extension bill to last well into 2011; and, (2) Congress pass S. 3706 or HR 3404 to provide unemployment insurance to the 99ers; and, (3) Congress pass a comprehensive State and Local government stimulus package.