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Economy
PI Original
by Adam Doster
1:43pm
Thu Jul 1, 2010

So What Just Happened? (A Budget Cut Primer)

The 2011 fiscal year began this morning and Illinois' spending plan is now technically in place. We offer a basic rundown of what budget items were salvaged and which ones were cut.

Quick Hit
by Adam Doster
3:47pm
Wed Jun 30, 2010

Reid: One Vote Shy On Unemployment Benefit Extension (UPDATED)

With the July 4 recess quickly approaching, Democrats in Washington are in overdrive trying to extend the filing deadline for emergency unemployment benefits. Last night, Senate Majority Leader Harry Reid (D-NV) introduced his new bill, which would continue emergency benefits through November 30 and make payments retroactive to cover the 1.2 million job seekers whose benefits expired this month. He says the legislation is supported by Republican Sens. Olympia Snowe and Susan Collins, both from Maine, leaving him just one vote shy of a filibuster-proof majority. If they can flip one more Republican, the chamber is expected to take up its cloture vote tomorrow night.

After a false start yesterday afternoon, the AP reports that the House is also hoping to take up its paired-down extension this evening. Their bill costs roughly $35 billion, or 1 percent of the $3.6 trillion federal budget. We will keep our eyes peeled and update the post with the latest congressional developments.

UPDATE (10:28 p.m.): For the third time this month, the Senate GOP blocked an extension of the filing deadline for emergency unemployment benefits. Democrats could not find one additional vote outside of Maine's two Republicans to break a filibuster and the measure was defeated 58-39. Senate Majority Leader Harry Reid (D-NV) voted no so he could file a motion to reconsider.

Quick Hit
by Adam Doster
4:13pm
Tue Jun 29, 2010

Why Bean Voted Nay On Unemployment Benefit Extension

We noted yesterday that leaders in the U.S. Senate starting building support for a standalone piece of legislation to extend the filing deadline for emergency unemployment benefits through November. A Senate Democratic leadership aide even told the Washington Independent that Majority Leader Harry Reid (D-NV) is working with members of the Republican caucus and hopes to move the $33 billion bill this week. But any reauthorization also requires the blessing of the House, which tried and failed today to muster the two-thirds majority needed to advance a companion bill (H.R. 5618).

How did the Illinois bloc vote? Illinois GOP Reps. Judy Biggert, Peter Roskam, John Shimkus and Democrat Melissa Bean all voted against the measure. Republicans Tim Johnson and Don Manzullo joined the rest of the Democratic delegation in support. (Reps. Mark Kirk, Bobby Rush, and Aaron Schock missed the roll call.) Here's a statement from Bean spokesperson Jonathan Lipman explaining her opposition:

“Congresswoman Bean supports a responsible expansion of unemployment to those who haven’t been eligible for the full benefit. However, the text of the bill was not made public before the vote and no legislative language was available on the floor despite the Congresswoman’s requests,  and she was uncomfortable with voting to approve a $34 billion bill without first seeing what she was voting on.”

House Ways and Means Committee Chairman Sander Levin (D-MI) said House Dems would call the same bill tomorrow under regular procedures requiring a simple majority for passage.  Hopefully, Bean will get access to the legislative language before that vote. 

Quick Hit
by Adam Doster
10:48am
Mon Jun 28, 2010

Sun-Times: Senate GOP "Stiff-Arming" The Unemployed (UPDATED)

Like Illinois' own Sen. Dick Durbin, the Sun-Times editorial board is appalled that U.S. Senate Republicans -- defenders of wasteful tax breaks for the wealthy -- won't extend the filing deadline on unemployment benefits because of misguided deficit concerns.

Millions of Americans are unemployed through no fault of their own during the worst economic times in generations. All they're looking for is for a little more help in weathering the storm -- something for the groceries and the mortgage.

Meanwhile the GOP, while stiff-arming ordinary Americans, runs to the defense of the wealthiest Americans and -- for that matter -- an international oil company responsible for destroying the economy and environment of the Gulf.

Read the full piece here.

UPDATE (1:33 p.m.): After a more robust jobs bill crashed and burned in the U.S. Senate last week, Sen. Debbie Stabenow (D-MI) has introduced a standalone piece of legislation to extend the filing deadline for emergency unemployment benefits. House Speaker Nancy Pelosi (D-CA) has signaled that she might move in this direction, as well.

Quick Hit
by Adam Doster
5:22pm
Thu Jun 24, 2010

Durbin Blasts GOP For Blocking Unemployment Benefits Extension

As expected, the Senate Republican caucus -- along with Democrat Ben Nelson (NE) -- stood firm today in their opposition to a jobs bill that would have extended the filing deadline on emergency unemployment benefits through November, voting 41-57 to block cloture on the legislation (H.R. 4213). Immediately following the roll call, Minority Leader Mitch McConnell (R-KY) submitted a motion to extend the filing deadline one additional month using a small portion of the funding identified in the bill.

That's when Illinois' own Sen. Dick Durbin unloaded on the minority party, suggesting that political posturing, rather than concern about the deficit, is driving their obstruction.  "The record is clear: It is a party of no that is hoping that the voters will vote yes in November," he said. "I hope they remember that the Republicans had no alternative [proposal] when it came to this disastrous economic situation." Watch it:

While a standalone bill extending the benefit deadline might surface next, the entire effort has been derailed for the time being.  As of tomorrow, the National Employment Law Project projects that 1.2 million Americans will have lost their unemployment aid as a result.

Quick Hit
by Adam Doster
10:28am
Thu Jun 24, 2010

The Medicaid Ripple Effect

Maine's two "centrist" Republican senators are putting state governments in quite a pickle. To lower the cost of a Democratically-authored jobs bill that would extend the filing deadline for emergency unemployment benefits, Sens. Olympia Snowe and Susan Collins want to curtail an extension of the enhanced Medicaid matching rate included in last year’s stimulus bill. That could force states to reduce coverage for folks that use the public health plan or spend more on Medicaid in 2011 than they had originally planned, creating new holes elsewhere in those budgets.

Both options are terrible. We've already seen how funding cuts have impacted social services statewide. And lowering Medicaid spending, even marginally, can produce a nasty ripple effect on the broader economy. Reduced coverage means the working poor must find more expensive health insurance, the state's federal matching funds shrink, and business declines for professionals who rely on Medicaid reimbursements for their livelihood -- medical providers, technicians, custodians, and health care administrators. Marc Zandi, chief economist of Moody’s Economy.com, estimates that some 200,000 jobs could be lost if Congress doesn't pass along the full Medicaid assistance for six months.

Quick Hit
by Adam Doster
1:27pm
Wed Jun 23, 2010

Trimming Medicaid Assistance To Save Unemployment Benefits?

As the New York Times editorial board noted this morning, it's becoming more and more clear that the U.S. Senate is in no rush to extend the filing deadline on unemployment aid, even as hundreds of thousands of jobless workers lose their benefits each week. But that doesn't mean some in Congress aren't still trying to figure out a way to push the "extenders" bill through.

House Speaker Nancy Pelosi (D-CA) said yesterday that she planned to hold a bill to preserve Medicare reimbursements rates -- the so-called "doc fix" measure -- until the upper chamber acts on the jobs bill. As of yesterday, Senate negotiations were focused on swaying Olympia Snowe and Susan Collins. The two Maine Republicans are demanding that, in exchange for their vote, the Democrats curtail an extension of the enhanced Medicaid matching fund rate included in last year’s stimulus bill.

Here's the catch: Doing so would blow an estimate $230 million hole in Illinois' FY 2011 budget. (As in numerous other states, lawmakers anticipated receiving the extra Medicaid funds when drawing up the spending plan).  Taking it out would almost certainly mean more budget tightening (i.e., layoffs).  At a time when polls suggest Americans are more worried about jobs than the long-term deficit, that seems like a dumb move politically. But if Collins and Snowe are the only gettable votes from the GOP, it might be the Democrats' only option to keep the unemployed afloat.