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Another Hole in the Safety Net for the Jobless - NYTimes.com

file:///E|/GD208/Russell_P1/editorial_project/Another Hole in the Safety Net for the Jobless - NYTimes.com.html[4/26/2012 2:54:25 PM]

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A version of this editorial appeared in print on April 3, 2012, on page A26 of the New York edition with the headline:Another Hole in the Safety Net.

EDITORIAL

Another Hole in the Safety NetPublished: April 2, 2012

Georgia is vying with Florida for the title of stingiest state, when it

comes to jobless residents. The Republican-controlled State

Legislature passed a bill last week to cut the duration of

unemployment benefits from a current maximum of 26 weeks to a

range from 14 weeks to 20 weeks, depending on the state

unemployment rate. Florida cut its 26-week maximum last year, to

a range of 12 weeks to 23 weeks.

Georgia’s cutback, which Gov. Nathan Deal, a Republican,

is expected to sign, will bring to 11 the number of states

that have cut jobless benefits in the past year by reducing

the duration or level of payouts or by restricting eligibility.

For more than 40 years previously, all states had provided

26 weeks of benefits. Federal benefits will still start when state benefits end. But they are

calculated as a percentage of state benefits, so cutting the number of state weeks cuts the

number of federal weeks. In the aftermath of the Great Recession, more than 30 states

have had to borrow from the federal government to meet their obligations to jobless

residents. But that is only partly because of the recession. It is also the result of excessive

tax cuts for business — no stinginess there — in the years before the downturn, which

deprived many states of revenue to build up their unemployment reserves.

At the start of the last decade, Georgia businesses were granted a four-year tax holiday

from paying state unemployment taxes, depriving the trust fund of $1.3 billion. But while

unusually low taxes — and certainly not overly generous benefits — are a culprit in

today’s shortfalls, don’t expect antitax politicians to see it that way.

A more responsible approach, for the economy and for families, is to maintain state-

based benefits and begin rebuilding the tapped-out trust funds. Even if states are willing

to start raising business taxes, a sharp increase would be bad for a recovering economy.

But Congress can help.

Senator Richard Durbin, a Democrat of Illinois, has sensible legislation that would

forgive federal loans for states that rebuild their trust funds over several years. It has

languished in the face of Republican opposition and Democratic unwillingness to force a

debate and a vote on the issue. It is bad enough to be unemployed, and worse when the

basic safety net is fraying from neglect, ideological opposition and Congressional

gridlock. Unless Congress offers solutions, states will provide less or become more

deeply indebted, or both, harming the most vulnerable.

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Another Hole in the Safety Net for the Jobless - NYTimes.com

file:///E|/GD208/Russell_P1/editorial_project/Another Hole in the Safety Net for the Jobless - NYTimes.com.html[4/26/2012 2:54:25 PM]

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Date: March 31, 2012 Project: Editorial Illustration Project Lead: Micheal Russell The New York Times has hired our firm to create an illustration to run with an editorial piece, that will be running in April 2, 2012 edition. Our design team will be working with the editorial staff of The New York Times to create an illustration that is both eye catching and summarizes the intent of the editorial. As the client runs both a printed version as well as a web based version of their paper the illustration needs to be done in a media that supports both ( I recommend Illustrator). The papers readers need to see this image and be prompted to read the editorial that accompanies it. As this is a widely distributed paper whose readers vary in all aspects from age to religious backgrounds to political views the target audience is some what hard to define. The client has asked us to keep the illustration light but to include the serious undertones of the written message. I have emailed the Project Lead a copy of the editorial along with a time line for completion of this project. The time line is short so we will need everyone’s “A” game on this one. I will expect project updates on a regular basis along with any obstacles that the team may encounter.

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