Congress extends jobless benefits Legislation adds up to 20 more weeks of payments

By JOEL DRESANG

Wisconsin unemployment insurance recipients running out of benefits could qualify for up to 20 additional weeks of payments under an extension approved Thursday by Congress.

After Senate approval Wednesday, the House of Representatives moved swiftly on the bill, which not only stretches jobless benefits but also provides tax credits for first-time homebuyers and certain businesses. The White House said President Barack Obama would sign the bill into law Friday morning.

The bill extends benefits by 14 weeks for all those who have exhausted their federal aid or will do so by the end of the year. Those living in states with unemployment rates 8.5% or higher will get an additional six weeks.

Wisconsin's rate was 8.3% in September, but based on a three- month average, Wisconsin would still qualify for the extra six weeks. The national jobless rate in September was 9.8%. The Labor Department reports on the October rate Friday.

The fourth extension passed by Congress in the past 18 months would stretch assistance to a maximum of 99 weeks, well beyond the extent of past government intervention, including up to 65 weeks of benefits in the 1970s.

The latest congressional action comes as the prospects for the out-of-work remain bleak despite signs of economic recovery. When new job market figures are released Friday, economists expect they will show tens of thousands of additional job losses.

The legislation also includes several tax credits designed to get the economy back on track: It extends for seven months the $8,000 credit for first-time homebuyers that is set to expire this month and expands that program with a $6,500 credit for purchases by homeowners who have lived in their current residences at least five years.

It also expands a law providing refunds for money-losing businesses that paid taxes on profits during the past five years.

The cost for extending unemployment benefits is $2.4 billion, to be paid for by extending an unemployment insurance payroll tax that employers must pay.

"The families who receive these benefits will be putting money right back into our local economy -- buying groceries and filling their cars with gas," Democratic Congresswoman Gwen Moore, of Milwaukee, said in a statement.

Moore cited research by the Congressional Budget Office and Moody's suggesting that unemployment benefits are a cost-effective stimulus, with every $1 to jobless families generating $1.63 in local economic activity because the unemployed quickly spend money on food and other basics.

According to Wisconsin Department of Workforce Development data, a record 56,000 individuals exhausted their unemployment insurance benefits statewide in August -- more than twice the number of workers who ran out in August 2008. Weekly benefits can range up to $388.

The House passed the bill 403-12. All the votes against the bill were Republicans. And though GOP lawmakers overwhelmingly supported it, several used the debate to criticize the Obama administration's job creation policies.

"We are not simply in the jobless recovery. We are in the job loss recovery," said Republican Rep. Kevin Brady of Texas.

On the Web For more information on unemployment insurance in Wisconsin, go to www.dwd.state.wi.us/uiben/ The Associated Press contributed to this report

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