Money on the Table
Kenneth R. "Ken" Plum
 
         About two weeks ago I journeyed back to Page County in the Shenandoah Valley where I grew up as a child.  The Democratic Committee for the County invited me as House Democratic Caucus Chairman to speak at their annual fried chicken supper.  They needed a little cheering up as the news had just been announced that their unemployment rate had reached nearly 18 percent, second highest in the state.  In contrast to rural Page, the highest rate was held by the City of Williamsburg at about 20 percent.  The two localities had the common characteristic that they both relay on outside sources for much of their employment support:  Williamsburg relies on tourists to support their workforce; Page sends many of its residents to other communities including Northern Virginia to work.  While the news was bad for the two localities, it reflected the fact that the economy is bad all over.
 
        The rising unemployment level in the state makes it even more puzzling that the House of Delegates last month by a nearly party-line vote rejected $125 million in federal stimulus money that was to be used for the unemployed until they could find a job.  The vote in which all Republicans except two in the General Assembly voted against accepting the money and all Democrats except one voted to accept it has raised concern throughout the Commonwealth.
 
        The arguments against accepting the money do not hold up to close consideration.  The notion that accepting the stimulus money would somehow cost jobs because of its expense to employers ignores the fact that Virginia has the 49th lowest unemployment insurance rate in the country, and its $98 per employee per year rate is a fraction of the nearly $250 average among the other states.  Estimates are that accepting the terms of the stimulus money to include benefits for laid off part-time workers and persons in training programs may have added as much as four dollars to the unemployment insurance premium rate if the legislature decided to keep the additional benefits beyond the time of the stimulus package.  That is hardly an amount that would result in lost jobs.
 
        An additional $125 million into the state would have given a modest but important boost to localities that need it most.  The resulting economic expansion would have been felt beyond the localities as tourists returned to Williamsburg and Page County workers found jobs they could travel to.  The real shame is that Virginia taxpayers will have helped pay for the stimulus dollars for the unemployed, but residents of other states that will now take the money will reap the benefits.
 
        If you would like to support the current petition drive to get the legislature to reconsider its action, go to www.standupforva.com.  As always, I invite your comments at kenplum@aol.com.