State House Sound Bites

Capitol reporter Katie Meyer covers Pennsylvania politics and issues at the Pennsylvania state capitol.

The State House Sound Bites Podcast is now called State of the State and is a part of PA Post, a digital-first, citizen-focused news organization to hold Pennsylvania’s government accountable to its citizens.

Lawmakers edge closer to agreement on jobless system funding

Written by Katie Meyer, Capitol Bureau Chief | Nov 21, 2017 3:39 AM

An audit earlier this year found mismanagement in the state's unemployment compensation program; that's one of the reasons funding has not been extended already. (Photo by AP)


(Harrisburg) -- After a year of fights over how to pay for Pennsylvania's claims system for jobless workers, lawmakers say they're getting close to a bipartisan solution.

A standoff last year over financial mismanagement in the unemployment compensation program resulted in nearly 500 layoffs.

Some workers have since been brought back, but not all.

A new plan passed through the House Labor and Industry Committee on Monday would give the UC program $115.2 million, which would be gradually phased out over four years.

That's less money than the program was getting before the layoffs, and it's unclear if it would be enough to rehire any more furloughed workers.

$115.2 million is also significantly less than Governor Tom Wolf had asked for, and a lot more than Republican Committee Chair Rob Kauffman originally proposed.

He said the compromise was necessary.

"We're coming together--maybe not singing kumbaya, but we're moving forward in the same direction," Kauffman said.

Nearly all the Democrats on the committee voted for the bill, though many said they don't think it truly solves the problem.

"I do question whether four years of funding is enough," said Leanne Krueger-Braneky, who was one of the bill's lead negotiators.

But she added, "it's right before Thanksgiving, we're running out of time, and we saw what happened last year when we couldn't agree on a solution to our unemployment compensation call centers--the whole system broke down."

Mark Landon, a spokesman for SEIU Local 668, the union that represents many of the laid-off workers, said UC call centers can't operate at full capacity at that funding level.

"The citizens of Pennsylvania are not going to get the service they deserve," he said. "There are going to be delays in processing again."

In the past, Governor Tom Wolf has opposed phasing out funding at all.

In a statement, he said he appreciates the committee moving the issue forward, but appeared to want to revisit it later.

House members said they think the Senate is also on board with the proposal.

Published in News, State House Sound Bites

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