Some Don't Agree With Governor About Stimulus Dollars

Mississippi Governor Haley Barbour

Mississippi could be in for double-digit unemployment rates as the recession continues. Part of the federal stimulus package is aimed at expanding unemployment benefits to help cover those people, but Governor Haley Barbour is saying no thank you to the offer. MPB’s Stephen Koranda reports.

Governor Barbour has said he won’t accept around 50 million dollars in federal funds to help expand unemployment benefits, because with the extra eligibility would come extra costs. Here’s Barbour speaking on the Fox News Channel this weekend.

“When the federal money runs out, we’d have to raise taxes on our employers by about 13 million dollars a year. We don’t want to tax employment. We want more jobs in Mississippi. If you want more jobs, you don’t get the them by putting a tax on employing people,” said Barbour

Maurice Emsellem with the National Employment Law Project doesn’t agree, because he says for every unemployment dollar spent, it generates two dollars in economic development.

“It’s just not accurate to say taxes will go up definitively if the sate adopts these reforms. In fact, there’s a good likelihood that the taxes could be even cut, because these reforms produce a lot of money,” said Emsellem.

Barbour has also argued to get the federal dollars would require Mississippi to change its state laws.

“To pay people unemployment compensation who are not willing to accept a full-time job. Our law has always been very clear, to get unemployment, you must be willing and able to take a full time job,” said Barbour.

“There are many people in that situation, mothers with kids who have to be home certain hours to take care of their kids, who can’t be looking for full-time work,” said Emsellem.

Emsellem adds officials could always repeal the changes in the future. State lawmakers can also bypass the governor to access federal dollars, if both chambers pass a resolution to accept the funding.