Georgia could cut jobless benefits to repay feds

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By Dan Chapman
The Atlanta Journal-Constitution

Georgia borrowed $721 million from Washington to help the unemployed survive the lousy economy and now, as the bills come due, it may repay the debt by cutting back on jobless benefits.

The state Labor Department will send a $21.4 million check to Washington this week, the first payment on debt run up since late 2009. Labor Commissioner Mark Butler is weighing a slew of repayment options, but strongly hinted he favors cutting benefits -- both the weekly amount and the number of weeks of eligibility.

“That’s not fair,” said Katrina Cunningham, a laid-off waitress applying for benefits last week at a north Atlanta unemployment office. “People have needs, not wants, and they need the money. They need to survive.”

Butler, in an interview, said he opposes raising or re-instituting taxes employers pay into the unemployment insurance fund. By mid-October, he’ll offer Gov. Nathan Deal and legislative leaders a list of options to repay the debt.

“I believe we have to keep these taxes at a minimum right now because they’d be an additional burden on businesses that would keep them from hiring people,” said Butler. “We’ve got to get these people back to work and increase revenue and this problem would take care of itself.”

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http://www.ajc.com/news/georgia-politics-elections/georgia-could-cut-jobless-1190183.html