Bob McDonnell and Virginia Republicans are now completely vindicated for turning down the $125 million in Federal stimulus money to expand unemployment benefits. Taking the Federal dollars required states to increase the unemployment benefits paid out weekly, extend the length of time one may draw benefits from 26 weeks to 59 weeks. It also added laid off part time workers to the dole for the first time ever.
Wisely, Virginia turned down the money led by the Republicans. Most Democrats including Tim “The Absentee Governor” Kaine and Creigh Deeds have demonized McDonnell and the Republican leaders for turning down the money.
The Republican position was that the acceptance of the funds and required expansion of Virginia Law would cause the unemployment funds to go broke and force tax increases on businesses already struggling to survive in this bad economy. As 30 states have found out (so far), accepting the money from the Feds was akin to dealing with a back alley loan shark.
Virginia recently dealt a blow to predatory practices by “pay day loan” businesses to protect Virginia’s workers. The Republicans had our backs on the Federal Unemployment Loan Sharks and Virginia is in a much better position as far as unemployment to pull through the recession without raising taxes on businesses and forcing higher unemployment as these overtaxed businesses fail.
Read the details from Newsmax: Unemployment Triples, Dozens of States Going Broke