The state Legislature passed an emergency bill Wednesday allowing for extended unemployment benefits offered by the federal government.
The bill comes in response to a recent spike in claims for unemployment insurance benefits and allows the state to access federal funds to pay for extended unemployment benefits in lieu of raising taxes.
Additional benefits for displaced Wisconsin workers are needed before our state funds are depleted. It's a scenario that would leave thousands without help in these rough times - and that's unacceptable,"" said state Rep. Christine Sinicki, D-Milwaukee, in a statement.
According to Assembly Majority Leader Thomas Nelson, D-Kaukauna, the bill could save taxpayers as much as $44 million.
""The purpose of the legislation is to ensure that unemployed workers of the state receive the necessary benefits so they can provide for their families"" Nelson said.
The bill passed the state Senate with a bi-partisan 33-0 vote, and passed the Assembly on a 96-1 vote. State Rep. Stephen Nass, R-Whitewater, was the lone dissenter.
""This is a band-aid approach,"" Nass said, adding the bill is merely a short-term fix.
According to Nass, the bill eliminates eight weeks of deserved unemployment compensation, reducing the extended benefit period to 20 weeks under the new federal program.
However, other lawmakers said the bill's passage takes necessary steps toward saving money for both the state unemployment insurance fund and taxpayers.
The now accessible federal funds in the bill can be suspended by the governor at any time ""when we're in a situation to do so,"" said Mark Knickelbine, spokesperson for state Sen. Julie Lassa, D-Stevens Point, Chair of the Committee on Economic Finance.
Although it is unclear exactly how long the state will need to tap into federal funds, Nass said he thinks it might be until 2010.
The bill ""had bipartisan support,"" Assembly Speaker Michael Sheridan, D-Janesville, said in a statement. ""I hope to continue this trend of work across the aisle.
