Friday, February 20, 2009

Jindal Rejects $90 Million In Recovery Funding That Would Have Benefited 25,000 Louisiana Residents»

From think progress: When President Obama signed the Economic Recovery and Reinvestment Act last week, it included three different provisions to benefit unemployed workers. The first provided funding to states that allowed for a $25 per week increase in benefits. The second extended the Emergency Unemployment Compensation (EUC) program which gives 20 weeks of federally-funded unemployment benefits to individuals “who had already collected all regular state benefits,” while the third provision widened the pool of people eligible to receive unemployment benefits.

Today, however, Louisiana Governor Bobby Jindal announced his intention to oppose changing state law to allow his Lousiana citizens to qualify for the second two unemployment provisions. Jindal said the state would only be accepting money to increase the unemployment insurance payments for those who currently qualify for unemployment insurance.

In all, Jindal turned away nearly $100 million in federal aid for his state’s unemployed residents. Further, as the National Employment Law Project projected on Febuary 13, EUC extension alone would have benefited 24,981 Louisiana residents. Jindal justified his decision by claiming that expanding unemployment benefits would result in tax increases for businesses. In a press release, the governor’s office explained:

The Governor said the state will not use a portion of the stimulus package that requires the state to change its law to expand unemployment insurance (UI) coverage to qualify for up to $32.8 million of the federal stimulus funding because it ultimately would result in a tax increase on Louisiana businesses.

But it is not clear why participating in the expanded unemployment insurance program would result in tax increases for business. By Jindal’s own estimate, the recovery package would have funded his state’s unemployment expansion for three years, at which point the state could — if it chose to do so — phase out the program.

As New Orleans Mayor Ray Nagin suggested earlier today, perhaps Jindal’s presidential ambitions are “clouding” his judgement. “I think he’s been tapped as the up-and-coming Republican to petition a run for president the next time it goes around. So he has a certain vernacular, and a certain way he needs to talk right now,” Nagin said.

MCL Comment: Well I guess Bobby Jindal is going to have a lot of time to plan out his run for president after he gets booted out after his one term.

2 comments:

Anonymous said...

I do not understand what his motivation not to accept the money is. It seems that Jindal reason is that people should be able to do it on their own personal savings

I disagree with this tactic because the current job market is in an almost depression-like state. People are going out of work for six months to a year. A lot of people work hard and save whatever they can but just do not make enough money to get an significant amount of personal savings without dipping into retirement funds.

And if Jindal believes in the "ownership society" than I do not see why he is aganist extending unemployment benefits. Extending unemployment benefits prevents people houses for being foreclose and allows people to stay in the job hunt for the jobs they really need

Motor City Liberal Returns said...

Hey sorry I haven't responded to your question I had a busy weekend. Well it's pretty simple why Bobby Jindal is talking this smack. He wants to be the guy on top of the Republican ticket in 2012, and he needs to build up his right wing street cred. And Mr.Jindal is doing his best from now to 2012 to prove his worth to the foaming at the mouth right so they can get behind him.

What I expect that if Bobby Jindal does become the Republican nominee for president it's going to be a replay of the 2008 election in my honest opinion.