JACKSON – Even though he says he opposes it, Gov. Haley Barbour also says he will not work against legislation designed to help low-income workers who lose their jobs through no fault of their own.

But that does not mean easy sailing for the legislation, which would change how unemployment compensation benefits are determined.

On March 27, just before the Legislature recessed until this week, the House passed a bill to change from what is known as a standard base period to an alternative base period.

The alternative base period allows more recent work experience to be used in calculating unemployment compensation.

Ed Sivak of the Mississippi Economic Policy Center said that under current law, or the standard base period, the benefits calculation for a person laid off in June would not include wages earned during that year. The change would allow for the first quarter of the year to be considered.

While the legislation has passed the House, it may run into trouble in the Senate.

Sen. Terry Brown, R-Columbus, said recently he had not decided whether he would actively work to kill the legislation, but said, “I know for a fact I will vote against it. ... I think we are bailing off in some dangerous territory.”

Brown said the legislation could strain the state’s unemployment trust fund and lead to additional costs for employers, who are taxed per employee to support the fund.

Supporters of the legislation say it would particularly benefit low-income workers. It is estimated that the change would help about 6,500 Mississippians and cost about $14 million annually.

“When people lose their jobs through no fault of their own, they need something to tide them over,” said House Labor Committee Chair Rufus Straughter, D-Belzoni, adding that the current method of calculating benefits in Mississippi has been in place for 60 years and goes back to a time when the technology was not available to use more updated work experience.

The state will receive $18.7 in federal stimulus funds if it adopts the alternative base period. According to information provided by Sivak, 33 states have adopted the alternative base pay method.

Joining Mississippi in not adopting the alternative period are the Southern states of Louisiana, Alabama, South Carolina, Florida, Kentucky and Texas.

Arkansas and Tennessee are among those that changed to the alternative base pay method after the federal stimulus package was signed into law last year by President Barack Obama.

Georgia had changed before the stimulus law was passed.

The stimulus package could provide a total of $56 million to Mississippi if various changes in the state’s unemployment compensation law are made. Those changes include allowing unemployment benefits for a person who quits a job to escape an abusive spouse and letting a person draw benefits while undergoing job training.

Last year the state House passed legislation in support of making the changes to draw down the stimulus benefits. But Barbour opposed changing the law, saying that after the stimulus funds were exhausted it could lead to a tax increase on employers.

House leaders pointed out the law could be changed back once the stimulus funds were gone.

This year, the re-authorization of the Department of Employment Security, which administers the unemployment compensation program, got caught up in the fight over the stimulus funds. It appeared the fight might lead to the failure to re-authorize the state agency.

Barbour said that as a compromise, to ensure the Department of Employment Security did not expire on July 1, he would not oppose changing the law to use the alternative base period method for calculating unemployment benefits.

“While I am not in favor of it,” he said, “I will not go to the mat to defeat it or veto it.”

But Barbour’s vow to not use his considerable influence to kill the legislation does not mean it will pass the Senate. It passed the House by a narrow margin, and might run into trouble in the Senate with members like Brown.

The Mississippi Manufacturing Association also stated its intention to oppose the legislation, saying it fears a tax increase on its members.



Contact Bobby Harrison at (601) 353-3119 or bobby.harrison@djournal.com.