April 23, 2009

Governor’s Office Statement on Senate Joint Resolution 86 Regarding Unemployment Benefits in the Federal Stimulus Law

Governor Riley did not sign Senate Joint Resolution 86 because it states something that is absolutely not true. This resolution says the Governor has refused to apply for these stimulus funds. The Governor has not refused to apply for any stimulus funds and has applied for all stimulus funds Alabama is eligible to receive. The only reason Alabama may not receive some stimulus funds related to unemployment benefits is because Alabama does not qualify for them. The Legislature must change state law in order for the state to qualify. Legislators acknowledged this fact when they passed a different resolution, Senate Joint Resolution 68, last month. SJR 68 asks Congress to “rescind those portions of the federal law (the federal stimulus law) that require changes in our state unemployment compensation law in order to receive additional unemployment compensation incentives.” A copy of SJR 68 is attached.

If some legislators truly want Alabama to receive this part of the stimulus, then they must change the state law. This is not up to the Governor. He hasn’t refused or rejected stimulus funds. We hope legislators will refuse to inject politics into this discussion.

BACKGROUND:

As the result of federal stimulus funds now available in Alabama, qualified unemployed Alabamians, who previously would have exhausted their unemployment benefits after 26 weeks, now are able to receive full benefits for up to 59 weeks. In addition, a $25 per week increase has been added to every recipient’s weekly benefit and will apply to all claims applied for through the remainder of this year. While neither of these two federally funded programs has received much attention, both will put more than $250 million into the pockets of unemployed Alabamians.

A great deal of attention, however, has been focused on $99.5 million in federal stimulus funds that will come to Alabama IF the Legislature changes existing state law to conform with specific federal provisions that will increase the number of individuals eligible for unemployment benefits in our state.