OLYMPIA — The state Senate passed a bill last week that would reduce unemployment taxes for some businesses and extend benefits to the jobless.
Senate Bill 5135 passed on a 46-1 vote Friday, with North Olympic Peninsula representative Sen. Jim Hargrove voting yes.
The bill would allow the 20 weeks of “extended benefits” the state provides during times of high unemployment to be available through the end of the year. It maintains benefits for 35,000 workers, supporters of the bill say.
It also is meant to provide temporary relief to employers who pay unemployment taxes.
The state’s unemployment fund is “very healthy,” Hargrove said, and does not affect the operating fund.
“Those businesses are going to hire people, and that is going to help us get out of the recession,” he said.
The bill has been sent to the House for consideration.
Paying for abortions
Hargrove, D-Hoquiam, said he also supports a bill that would prohibit state and local funds from being used to pay for abortions.
Senate Bill 5336 says that funds from state, city and county governments could not help pay for abortions “directly or indirectly” unless the mother’s life is in danger.
It’s sponsored by 16 senators, including Hargrove.
“Protecting human life is just my philosophy,” he said.
Hargrove said he wasn’t sure how much money the state provides for abortions.
He said he doesn’t expect that the bill will gain traction this session.
Hargrove represents the 24th District along with House Majority Whip Rep. Kevin Van De Wege, D-Sequim, and Rep. Steve Tharinger, D-Sequim.
Van De Wege said he would be “very hesitant” about supporting the measure. He said he hadn’t seen the bill and couldn’t comment further.
Tharinger said he couldn’t comment without seeing the bill.
State-based preference
Van De Wege and Tharinger have sponsored a bill that would give companies based in the state preference for contracts.
Introduced by Van De Wege, House Bill 1809 would require the state to pick a contractor from the state if its bid is within 6 percent of the lowest bidder.
The Sequim Democrat said he introduced it because he is concerned that some out-of-state contractors try to get out of paying unemployment insurance and other “benefits.”
“There’s plenty of examples of out-of-state companies coming in and doing a project and not paying the last couple months of [unemployment insurance],” he said.
“Plus, it’s just good policy to try to keep tax dollars generated in Washington, and this helps that happen.”
Van De Wege and Tharinger both said that they would rather see the jobs go to Washington residents.
They said that outweighs concerns that the state would end up paying more for some contracts.
“I think the fact that these are state dollars . . . the preference should go to Washington state citizens,” Tharinger said.
Supplemental budget
On Friday, the Senate passed a supplemental budget intended to balance the state’s revenues and expenses through June.
Hargrove said it cut about $350 million more than the House’s version.
But it still leaves the state about $250 million in the red for the rest of July 2009-July 2011 biennium budget.
“We’re going to have to find more places to make reductions, there’s no doubt about it,” Hargrove said.
As well as eliminating the state’s Basic Health Plan, the Senate’s version also eliminates cash benefits for recipients of the state’s Disability Lifeline program, he said.
The program provides financial assistance to low-income adults without children who are unable to work due to physical or mental problems.
The program, Hargrove said, would still provide help with recipients’ medical bills.
“People ask: ‘Why would you do that?'” he said. “Because we don’t have any money.”
Hargrove voted for the budget, which has to be reconciled with the House’s version.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.