 PEF fights Bush move to yank federal support for laid-off workers, vets By SHERRY HALBROOK Just as the country is trying to fight its way out of a recession, President George W. Bush has proposed sweeping cuts and changes in federal funding for services to unemployed workers and military veterans. The proposals could affect hundreds of PEF members at the state Labor Department (DOL) who provide those services. “It’s hard to imagine a worse time for the president to cut federal support for laid-off workers and military veterans,” said PEF President Roger Benson. “New Yorkers need help,” he said. “Instead, Bush is trying to shift this burden onto the state.” Bush would cut $25.8 million in federal funding for employment and training programs for the federal budget year that begins October 1. And he would gradually reduce the federal payroll tax on employers from its current rate of .8 percent to .2 percent by 2007. That federal tax pays for state labor departments to administer the Unemployment Insurance Program. When fully phased in, the move would shift $320 million a year in costs to New York State to administer and maintain unemployment benefits. The state also charges a payroll tax on employers to help pay for unemployment benefits and might have to hike that tax to make up for the federal tax cut. According to PEF’s research director, Tom Cetrino, the proposal also threatens to bankrupt the unemployment insurance reserve fund, which also depends on the federal payroll tax. “The president’s proposal virtually guarantees the unemployed will not get the money they need when they need it,” Cetrino said. Bad break for vets Bush also has proposed moving veterans’ employment and training services from the Department of Labor to the Department of Veterans Affairs (DVA) — a move seen as the first step toward privatizing these services, since DVA does not have the capability or resources to run these programs. The DVA already faces serious challenges in providing timely health care and reducing a backlog of nearly 600,000 claims. Dennis Beagle, PEF chair of the DOL Joint Labor-Management Committee is testifying on this proposal in Washington before a House of Representatives subcommittee on veterans’ benefits. Write, call your reps Benson has written to all members of New York’s congressional delegation alerting them to the dangers posed by these proposals, and he has developed a fight-back plan with PEF’s international affiliates and the state AFL-CIO. “We are working closely with our PEF leaders at DOL to educate members about these proposals and how they threaten our jobs and services,” Benson said.” Benson urges all PEF members to write or call their congressional representative and US Sens. Hillary Clinton and Charles Schumer. Tell them to reject federal funding cuts for the unemployment insurance program and employment and training programs. And tell them not to transfer veterans’ employment and training programs from the Department of Labor to the DVA.  Fight The Funding Cuts!CALL: Sen. Hillary Clinton (212) 688-6262, (518) 431-0120, or (315) 448-0470 CALL: Sen. Charles Schumer (212) 486-4430, (518) 431-4070, or (716) 846-4111 |
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