Boss Bauer’s Unemployment Insurance End Game
House Speaker Pat Bauer can’t really win by traditional means.
With a Republican Governor and a strongly Republican Senate, the Speaker now counts victories not by policies he passes, but by policies he kills. Tax caps, local government reform, even open government measures.
Other than the budget, the most important item remaining in this legislative session is the unemployment fund fix. The fund, which started running a structural deficit in 2001, is now broke, and Indiana is borrowing money from the feds. The House, which is constitutionally required to start revenue-raising bills punted on the issue. They didn’t pass a bill at all in the first half, leaving Senate Rs to do the work.
More than a month ago, we wrote that this is a no-win situation for House Democrats. The fund cannot be fixed without both benefit cuts and tax increases. The Senate bill reflected that, and eventually, we argued, House Ds will have to vote on that kind of measure.
But now, it appears that Boss Bauer may have another end-game in mind. One that would be a victory for the old-school Democrat: a federal takeover of the fund.
What will the federal government do? Exactly that.
Only in Pat Bauer’s world is a deeper debt, tax increases, and a federal takeover of state government a victory.
House Speaker Pat Bauer can’t really win by traditional means.
With a Republican Governor and a strongly Republican Senate, the Speaker now counts victories not by policies he passes, but by policies he kills. Tax caps, local government reform, even open government measures.
Other than the budget, the most important item remaining in this legislative session is the unemployment fund fix. The fund, which started running a structural deficit in 2001, is now broke, and Indiana is borrowing money from the feds. The House, which is constitutionally required to start revenue-raising bills punted on the issue. They didn’t pass a bill at all in the first half, leaving Senate Rs to do the work.
More than a month ago, we wrote that this is a no-win situation for House Democrats. The fund cannot be fixed without both benefit cuts and tax increases. The Senate bill reflected that, and eventually, we argued, House Ds will have to vote on that kind of measure.
But now, it appears that Boss Bauer may have another end-game in mind. One that would be a victory for the old-school Democrat: a federal takeover of the fund.
Senate President Pro Tem David Long says a deal on fixing the bankrupt unemployment trust fund is critical to avoid a federal takeover of the fund.
The Fort Wayne Republican says negotiators have been “working quietly” toward a compromise, and says he’s optimistic about an agreement with the House by the April 29 deadline.
He says both parties recognize the tax hikes or benefit cuts needed to stabilize the program will only get steeper if there’s no deal this year, and warns a stalemate could take the decision out of the state’s hands.
“That would be a disaster,” Long contends. “I think it would raise rates incredibly at an unsustainable level for employers. We’d have a Washington-style fix, (with)tax increases dictated by a very liberal government.”
What does Bauer ultimately want? A huge tax on business that allows the unemployed to continue receiving the third-highest benefits in the country.The Fort Wayne Republican says negotiators have been “working quietly” toward a compromise, and says he’s optimistic about an agreement with the House by the April 29 deadline.
He says both parties recognize the tax hikes or benefit cuts needed to stabilize the program will only get steeper if there’s no deal this year, and warns a stalemate could take the decision out of the state’s hands.
“That would be a disaster,” Long contends. “I think it would raise rates incredibly at an unsustainable level for employers. We’d have a Washington-style fix, (with)tax increases dictated by a very liberal government.”
What will the federal government do? Exactly that.
Only in Pat Bauer’s world is a deeper debt, tax increases, and a federal takeover of state government a victory.
