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| Thousands of Mainers on Verge of Losing Unemployment Benefits |
| 06/03/2010
Reported By: Josie Huang
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| An estimated 7,000 jobless Mainers stand to lose their extended unemployment insurance next week unless Congress decides to continue the program. That's according to Christopher St. John of the Maine Center for Economic Policy, who says the number of people losing these benefits will grow by an another 30,000 people by November without action by Congress. |
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| Thousands of Mainers on Verge of Losing Unemployme |
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"There are over 57,000 people unemployed in Maine and they need this help, but the whole state economy needs this kind of investment to create more jobs and to restore prosperity," St. John says.
But faced with a growing federal debt and mid-term elections fast approaching, Congress is balking at extending jobless benefits beyond the traditional 26 weeks, along with other proposed provisions in the bill, such as extra health care funding for states, including Maine.
The extra federal funds for the state's Medicaid program serving low-income Mainers is scheduled to run out in December, in the middle of the state fiscal year. "Like 29 other states, Maine's Legislature finalized the state budget for state fiscal 2011 with the expectation that the extension of these funds would be passed in Congress," says Ana Hicks of Maine Equal Justice Partners.
The $85 million in anticipated federal money was, in fact, used to balance the state budget, says House Minority Leader Josh Tardy, a Republican from Newport. "If we don't have the federal money coming in, we will definitely be forced to change the way we do business in the particular area of Health and Human Services. It would require some restructuring."
Fearing job losses, labor groups are working hard to convince Congress to pass the so-called tax-extender bill. The Maine State Employees Association, the country's largest public employee and health care workers union, is launching ads targeting senators such as Maine's moderate Republicans, Olympia Snowe and Susan Collins.
Collins, for one, says she continues to support the extended jobless benefits and the extra funding for Medicaid. "It's clear that the economy is still very troubled and that unemployment is still very high," she says. "That means that there are a lot of individuals -- thousands in our state alone -- who through no fault of their own, simply cannot find more work."
At the same time, she says the country needs to start paying for these programs. "We are running a record deficit of more than $1 trillion a year. That, too, poses a threat to our economy and simply is not sustainable."
Collins says Congress could fund these programs by looking at other areas to cut -- such as a plan to develop an alternative to the war fighter engine being made in part by Pratt & Whitney workers in Maine.
Aside from extending unemployment benefits and health care funding, advocates are also urging Congress to extend a program that subsidizes health insurance for out-of-work Americans. An estimated 700 Maine households would be affected if the program were cut.
The Senate returns from the Memorial Day weekend recess on Monday.
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