Arizonans who find themselves out of work through no fault of their own could get their first increase in benefits in 17 years.
Members of the Senate Appropriations Committee voted 9-1 Tuesday to set the maximum benefit to $320 a week as early as this summer. And if the employer financed trust fund that pays for benefits gets back into healthy territory, the maximum benefit would then increase to $400 a week.
The current cap of $240 was set in 2004 and is the second lowest in the country; only Mississippi pays less.
SB 1411 would also allow individuals to earn up to $160 a week without losing benefits, whether while looking for a new full-time gig or remaining on a part-time status with a current employer. Currently any income over $30 disqualifies the employee.
Prior efforts to increase unemployment benefits were pushed by Democrats and met with GOP resistance. SB 1411 has better odds of passing thanks to support from Senate President Karen Fann. The Prescott Republican said she worked with business interests to get the necessary buy-in. As a result, no one from the business community has come out in opposition.
To fund the increase, employers would pay more in the taxes that finance the benefits. But Fann’s measure includes a trade-off of sorts. Current law allows state benefits to continue for up to 26 weeks, not counting special federal programs. SB 1411 would drop that to 20 weeks, but only if the state's jobless rate dips below 6%.
The bill cleared the Appropriations Committee with bipartisan support. Sen. Michelle Ugenti-Rita, a Scottsdale Republican who cast the lone dissenting vote, said she’s concerned that there isn't enough in the law to ensure that people collecting benefits are actually out searching for a new job.
Even if Fann can guide the bill through the Legislature, it’s unclear if Gov. Doug Ducey would sign it. Ducey has consistently opposed any benefit increase, even as the state's jobless rate topped 13% during the pandemic-induced recession, brushing aside questions of whether he could survive on $240 a week. He said that in normal times — meaning before the pandemic — there were plenty of jobs out there for people to find "at any time'' and he sees no need to adjust that $240 figure.
Fann said she has informed the Governor's Office about the details of her measure. The only thing that gubernatorial press aide C.J. Karamargin would say to Capitol Media Services is that Ducey is "reviewing the measure.''
Fann isn't the only Republican interested in adjusting jobless benefits. Rep. David Cook (R-Globe) is sponsoring HB 2805 which would raise the cap to $300 a week. That measure, like what Fann is proposing, also would allow people to earn up to $160 a week without losing benefits. His bill cleared a House panel and awaits action by the full chamber.