Proposal to shorten duration of unemployment benefits runs into filibuster

LINCOLN — A proposal to shorten the maximum duration of unemployment benefits in Nebraska from the current 26 weeks to 16 weeks ran into a filibuster Tuesday.

Critics said studies have shown that cutting off unemployment benefits earlier hasn’t pushed more people back to work and may have harmed economies by reducing local spending.

There was also pushback from senators about cutting benefits for the unemployed after the state had cut income tax rates that benefited corporations and the well-off.

“We fight over nickels and dimes and pennies in this place when it comes to poverty, and we give money away like it’s a free-for-all when it comes to the most wealthy,” said State Sen. Machaela Cavanaugh of Omaha.

Cavanaugh led a filibuster against Legislative Bill 1170, which was introduced by Ralston Sen. Merv Riepe and declared a priority bill by the Legislature’s Business and Labor Committee, which Riepe chairs.

Divided views in debate

The bill advanced from committee on a 4-3 vote and faced similar divided views during floor debate Tuesday.

Riepe portrayed the reduction — which is backed by the state chamber and other business groups — as a way to get more people back into the workforce and help address the state’s labor shortage.

He said that there are 2.5 job openings for every unemployed person in the stat and that it’s reasonable to expect for someone to find a new job within 16 weeks, even if it isn’t their dream job.

“While it’s important to support Nebraskans in finding work that aligns with their experience and provides fair compensation, it’s also crucial to recognize that, at a certain point, individuals may need to accept available work opportunities,” Riepe said.

Thirteen states, he said, currently provide fewer than 26 weeks maximum on unemployment, including Iowa, which limits it to 16 weeks. Thirty-five states, meanwhile are at 26 weeks maximum or above.

Such a change would reduce the total unemployment benefits needed in the state by about $23 million a year, according to a legislative fiscal note on LB 1170.

‘Outlier’ among states, Vargas says

About 30% of the state’s unemployment benefits are paid after 16 weeks, according to the Nebraska Department of Labor.  About 2,300 Nebraskans received benefits after week 16 during the past year, the department said, out of the total 12,889 who received benefits.

Several senators joined Cavanaugh in criticizing the proposal.

Bellevue Sen. Carol Blood said that if Nebraska wanted to encourage more people to work, it ought to consider increasing benefits, such as paid maternity leave and child care.

Omaha Sen. Tony Vargas said there’s no “sound policy” to justify such a reduction in benefits, and at 16 weeks maximum, Nebraska would be an “outlier” among the states.

Debate ceased on the bill at the end of the day Tuesday without a vote to advance the bill.

It was unclear whether Riepe had 33 votes for LB 1170 to fend off a filibuster. The senator said the bill probably won’t return to the agenda for a week.