Daniels, Republicans Still At Odds With Democrats Over Unemployment Fund

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(STATEHOUSE) - Governor Daniels says a deal to revive the bankrupt unemployment trust fund will have to include some cuts in benefits.

House Democrats have been just as adamant that it shouldn't.

Labor Chairman David Niezgodski (D-South Bend) offered a plan last week to get the fund back in the black solely through higher payroll taxes on businesses, and an advertising blitz has sought to rally Hoosiers against any attempt to cut benefits.

Daniels says the final bill needs to be "balanced."

Daniels says business will have to absorb higher taxes, but says putting the entire burden on employers would end up costing jobs and pushing wages down. Daniels applauds Senate Republicans' version of an unemployment fix.

He says that plan not only shares the burden, but shifts more of business's share toward larger companies responsible for most of the layoffs. Legislators have until Wednesday to approve a final plan.

Daniels and House Speaker Patrick Bauer (D-South Bend) have said the unemployment fix is the one bill other than the budget which must pass this year, even if that means a special session.

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