Missouri House overrides Nixon's veto on unemployment cuts

JEFFERSON CITY, Mo. -- Missouri's Republican-controlled House voted Tuesday to override the Democratic governor's veto of legislation that would reduce the weeks of available jobless benefits to one of the shortest periods in the nation.

The 109-53 vote met the minimum needed to override vetoes; a similar two-thirds majority vote is needed in the Senate for the measure to receive final approval.

Missouri already is one of seven states that offer less than the standard 26 weeks of benefits. The measure vetoed by Gov. Jay Nixon would link the duration of jobless benefits to the state's unemployment rate, starting January. The effect would be to cut the weeks of benefits available for laid-off workers from the current 20 to as few as 13, if the statewide unemployment rate remains below 6 percent.

The March unemployment rate for Missouri was 5.6 percent, according to the U.S. Department of Labor. An unemployment rate of over 9 percent would be needed to receive 20 weeks of benefits.

Some Republican-controlled legislatures in recent years have pushed to cut the benefits available, arguing workers would have a greater reason to find a new job more quickly. Republican state Rep. Jay Barnes of Jefferson City said people tend to search more aggressively for work when benefits are about to run out.

"Incentives matter," Barnes told colleagues during Tuesday's debate.

Four other states already link the duration of benefits to the unemployment rate -- Kansas, Florida, North Carolina and Georgia. Just two states have minimums lower than Missouri's proposed 13 weeks. Florida and North Carolina allow benefits to drop to as few as 12 weeks if the state unemployment rate is below 5 percent. Florida's benefits stand at 14 weeks and North Carolina's at 15 weeks.

"We are really hurting those people that are down and out right now," said Democratic Rep. Margo McNeil, of the St. Louis suburb of Florissant. "We're going to vote to be the absolute stingiest state in the nation with this override. I mean, where is our humanity?"

Republicans have made the legislation a priority as a way to reduce costs for employers. A similar measure passed last year and was vetoed, but lawmakers fell two votes short of an override in the House.

This year's bill is different in it also makes it more difficult for employees who get severance pay when they lose their jobs to qualify for benefits. That's because it would require lump-sum severance payments to be pro-rated on a weekly basis, potentially delaying the clock for when people can begin receiving benefits.

Missouri provides up to $320 a week in unemployment benefits, calculated based on a person's previous income.

The legislation would increase the amount the state could hold in its unemployment insurance trust fund. It would encourage a state board to consider alternative mechanisms besides borrowing from the federal government when that fund runs out of money.

Employers lose part of a federal tax credit when the state owes the federal government money for unemployment benefits. Missouri began borrowing from the federal government in 2009 and paid it off last year. Business groups say the changes would bring needed stability to the fund and help avoid additional fees in the future.

"At the end of the day, we can't just keep repeating this cycle of having to borrow money for unemployment," said bill sponsor Rep. Scott Fitzpatrick, a Republican from Shell Knob.