By a vote of 81-38, the Florida House passed a measure to reform the state unemployment compensation (UC) system now drowning in red ink.
It also engaged in its first substantive debate of the 2011 session, with Republicans arguing the reforms would spur job growth and Democrats insisting they will hurt unemployed Floridians.
The measure, which still needs to pass the Senate, will reduce unemployment compensation payouts from 26 weeks to 20 weeks -- and down to 12 weeks if the unemployment rate drops below 5 percent. The measure also will require Floridians receiving unemployment benefits to take skills assessments.
Soon after the vote, Gov. Rick Scott released a statedment: I commend the House for taking the lead on reforming the unemployment compensation system. The Houses legislation reduces taxes on Florida businesses and ensures that we have the necessary safety net for those who are out of work."
The governor continued, "By linking the number of weeks a person can receive benefits to the states unemployment levels, we are creating an environment for Florida s job creators to get the state back to work. I want to thank Representative Holder, House Majority Lopez-Cantera, and Speaker Cannon for their prompt attention to this issue, and I look forward to the Senate tackling unemployment compensation as soon as possible.
Earlier on the floor Rep. Doug Holder, R-Sarasota, who introduced the bill, said, This bill is about tax relief to help business retain jobs.
The House had agreed to an hour-long debate, giving both sides 30 minutes apiece to argue the bill's merits.
Rep. Dorothy Hukill, R-Port Orange, kicked off the debate and served as the floor manager for the Republicans.
Our unemployment compensation system is fractured, said Hukill, who insisted that businesses would face tax increases if the measure was not passed. There is no silver bullet to solve every single problem in the unemployment compensation system.
Hukill praised the measure for helping usher an environment that fosters business innovation and, more importantly, business growth.
After Hukill spoke, House Democrats started their first round of arguments.
Democrats, with Rep. Jim Waldman of Coconut Creek as floor manager, countered with Rep. Scott Randolph of Orlando who attacked the measure for helping out-of-state companies instead of out-of-work Floridians.
Are we going to stand with Floridians or Wall Street demanded Randolph, who insisted that the measure would help investors more than working-class residents of the Sunshine State.
This bill tries to do too much, too soon, said Democratic Leader Pro Tempore Joe Gibbons of Pembroke Pines, who attacked the skills assessments requirement.
Rep. Luis Garcia, D-Miami, praised some aspects of the bill but said the time was wrong to cut benefits with so many Floridians out of work. Garcia quoted former President George H.W. Bush, calling the measure voodoo economics.
This is not the time to crush down on the middle class and the lower middle class, said Rep. Evan Jenne, D-Fort Lauderdale.
Republicans countered with arguements that the bill would help businesses recover and lead to more jobs in the Sunshine State.
Conservative Rep. Ritch Workman, R-Melbourne, who praised the measure, argued that it would help pave the road to recovery.
High business taxes equal higher business taxes and increased layoffs, said Workman. Our businesses drive our economic recovery.
Workman pointed to his own record as a small-business man to opposed Randolphs comments.
I am not a rich Wall Street fat cat, continued Workman. I am a small-business owner.
Rep. Steve Precourt, R-Orlando, also backed the measure, noting that current Floridians receiving unemployment benefits would not be impacted. Precourt praised the assessment component, arguing that it would help link Floridians to jobs.
After Precourt spoke, Waldman led more Democrats to oppose the measure. They argued that the measure would hurt Floridians who needed help during the continuing recession.
The unemployed are victims of this recession, said Rep. Geri Thompson, D-Orlando. They are not the cause of it.
Lets not add to the suffering of our friends and neighbors who are unemployed through no fault of their own, added Thompson.
This bill is punitive in a time when there are no jobs. said Rep. Darryl Rouson, D-St. Petersburg. The savings to business does not outweigh the costs of the unemployed and, ultimately, the cost to Florida.
Rep. Joseph Abruzzo, D-Wellington, praised every aspect of the measure except one -- reducing benefits from 26 weeks to 20 weeks. What were going to do today is take away that little bit more time, he said, that jobless Floridians needed.
Rep. Darren Soto, D-Orlando, argued that the measure would add to the burden of the federal government.
This will necessarily add to the federal debt, said Soto, who insisted that the measure would also lead to an increase in Medicaid and Food Stamp costs.
Hukill turned to Rep. Chris Dorworth, R-Heathrow, who is penciled in to become speaker after the 2014 elections, calling the measure a hard choice.
The bill that has been offered by Chairman Holder is the best thing for the state of Florida, said Dorwoth.
This is real money that the state of Florida is incurring, added Dorworth, who noted that the state has had to borrow $2 billion to continue unemployment compensation since 2009. This bill will lower that.
Rep. Debbie Mayfield, R-Vero Beach, praised the measure, specifically the skills assessment.
Were moving a UC system to a re-employment system, said Mayfield. What is critical is helping the unemployed get back to work that is what the skills assessment is going to do.
Agreeing with assessments that the legislation is mean-spirited, incoming Democratic Leader Perry Thurston, D-Plantation, ripped into the proposal, arguing that the state does too little to help unemployed Floridians as is.
This is the first bill of the session we choose to address, said Thurston, who attacked the measure in passionate tones. Were talking about middle-class Floridians who want to work.
This session is supposed to be about jobs, closed Thurston. This is not the time for this legislation.
Rep. Jeff Clemens, D-Lake Worth, attacked the measure in religious terms, asking what would Jesus cut?
Clemens said there were not enough new jobs for those out of work to cut unemployment compensation.
There is one job for every five unemployed in the state of Florida, said Clemens. There but for the grace of God go I.
Democrats closed the debate touching on various matters. Rep. Steve Perman, D-Boca Raton, argued that he was a small-business owner, like Workman, and he backed keeping the benefits at 26 weeks. Rep. Rick Kriseman, R-St. Petersburg, attacked the measure, saying this measure was giving too much power to big businesses in employees personal lives.
Holder closed the debate, noting the announcement from the Agency for Workforce Innovation earlier Thursday that the unemployment rate dropped from 12 percent in December to 11.9 percent in January.
We need to continue that trend and, with this bill, we can continue this job growth, insisted Holder. We have all heard from our constituents. They want jobs, not unemployment compensation.
It sends a resounding message to the business world that Florida is the place to be, he added as the debate concluded.
Cannon praised the very thoughtful policy-oriented debate and thanked Holder and the floor leaders.
Moments after the measure passed, the House leadership weighed in, cheering the passage of the legislation.
In these challenging economic times, the House has done its part to provide needed tax relief to Florida businesses, said House Majority Leader Carlos Lopez-Cantera, R-Miami. The bill reforms an outdated unemployment compensation system in an effort to stop the catastrophic effects of the current UC system on our economic growth. The bill brings consistency and fairness to the UC system by providing critical tax relief, adjusting UC benefits to reality, and clarifying workplace expectations.
Our state is experiencing one of the most challenging budget shortfalls in recent Florida history. While understanding our tough financial situation, we are still providing unemployment compensation benefits to those out of work, and going further to provide tools to help out-of-work Floridians, added Lopez-Cantera.
Our focus is getting Floridians back to work. By providing tax relief to Floridas business community, we are helping those directly responsible for providing Floridians jobs.
I commend my fellow House members for passing this significant legislation today, said Holder. Adopting this legislation is an important step toward replenishing the states unemployment compensation trust fund and ensuring its health and solvency going forward.
Revising the current unemployment compensation system will also improve Florida's business climate and our states ability to attract new businesses, which we hope will result in the creation of new jobs for unemployed workers, continued Holder.
Unfortunately, the harsh reality of the economic downturn overwhelmed our states unemployment compensation trust fund and triggered automatic increases in taxes for Florida employers, said Hukill. This legislation reduces taxes for most Florida businesses, providing businesses the financial security to continue to employ workers.
This bill addresses a critical challenge that our state faces, and I applaud Representative Holder for sponsoring this bill and seeing it through the process, added Hukill.
The Florida AFL-CIO released a statement during the debate, blasting the proposal.
The current recession was created by Wall Street and the banking industry that pushed deregulation and made risky investments, making CEOs and stock traders prosperous while working families lost their livelihoods, noted the union group. The rhetoric that the unemployed are lazy' or not looking for a job so they can get a check of $275, is disingenuous and fails to realize that it will take a minimum of four years and 900,000 jobs to return to pre-recession levels.
There are simply not enough jobs to get the estimated 1.108 million Floridians back to work, insisted the AFL-CIO.
Today the Florida House responded to the needs of Floridas job creators our business community by making important changes to the unemployment compensation tax system to ease the looming tax increases in the short term, while at the same time making needed adjustments to promote the long-term stability of the program, insisted Cannon. Florida businesses have already received their tax bills which become due April 1. Legislation passed today will help ease that tax increase.
Government cannot create jobs, continued Cannon. What we can do is work to increase stability and consistency in Floridas tax and regulatory framework, so that businesses will have the confidence to create jobs in the private sector.
We encourage our partners in the Florida Senate to take up this critical legislation as we work together to empower private-sector job creation, added Cannon. Swift action to head off this tax increase is essential.
The House will reconvene Tuesday afternoon and will address teacher performance pay reform next week.
Reach Kevin Derby at kderby@sunshinestatenews.com or at (850) 727-0859.
