Missouri lawmakers vote to slash unemployment benefits

Shell Knob Republican Rep. Scott Fitzpatrick's proposal would shorten the benefits period for laid-off workers from 20 weeks to 13 weeks if the unemployment rate is below 6 percent.

Missouri's number for December 2016 was 4.4 percent and hasn't been above 6 percent since July 2014. 

The Missouri Supreme Court blocked a 2015 version of the changes aimed at shoring up the state's unemployment trust fund on procedural grounds six months ago, but House Republicans have remained resolute.

Several representatives said they were trying to avoid a repeat of 2009, when the Great Recession spiked unemployment rates and bankrupted the trust fund. They lamented that Missouri had to borrow more than $1 billion from the federal government, leaving businesses to pay millions in interest on borrowed money.

Democrats called the measure unnecessary and mean-spirited, especially when deep-red states like Alabama and Texas offer 26 weeks of benefits and higher compensation. 

"This is going to hurt people," said Rep. Jon Carpenter, D-Kansas City. "I don't understand why other conservative states can pay a lot more for a lot longer, but we can't figure this out." 

Fitzpatrick said that those states likely make it harder to qualify for jobless benefits, meaning their money goes further, but doubted Democrats would interested in adopting similar measures.  

The proposal has the support of business groups including the National Federation of Independent Business and the Missouri Chamber of Commerce and Industry, and fits right in with Republicans' pro-business agenda this session. 

Gov. Eric Greitens signed a right-to-work law earlier this month that bars unions and employers from requiring workers in a bargaining unit to pay dues and Republican legislators have been hard at work pushing measures limiting workers' compensation and civil lawsuits in recent weeks. 

Former Gov. Jay Nixon, a Democrat, vetoed Fitzpatrick's measure in 2015, saying Missouri was among eight states paying less than the national norm of 26 weeks.

Under the plan, the maximum number of weeks will rise if the unemployment rate begins creeping above the 6 percent level, topping out at 20 weeks if the jobless rate crests over 9 percent.

The legislation is House Bill 288.