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Unemployment in Florida reaches 11.2 percent; debate over federal aid continues

Posted Nov 20, 2009 by Catherine Dolinski, Tallahassee bureau

Updated Nov 20, 2009 at 11:38 AM

This just in from the state Agency for Workforce Innovation: Florida’s unemployment rate inched up again last month to 11.2 percent, reflecting the fact the fact that 1.027 million Floridians were out of work.

That’s just a hair worse that September’s rate of 11.1 percent, but a full percentage point higher than the national jobless rate. It’s also 4.3 percentage points higher than Florida’s unemployment rate in October 2008. According to the folks at AWI: “October’s rate was the highest since June 1975 when it was also 11.2 percent. The last time it was higher was May 1975 when it was 11.9 percent.”

The not-especially-surprising bad news comes amid debate between state Democrats and Republicans over whether Florida should have accepted $444 million in federal stimulus bucks for unemployment compensation. GOP leaders refused the money because it came with a mandate to expand both eligibility and benefits.

Now, according to the state Department of Revenue, Florida is facing a deficit in its unemployment compensation fund, which will dramatically hike unemployment compensation taxes on businesses next year. Democrats have been hammering Republicans this week for leaving the $444 million on the table, while Republicans argue that accepting the money wouldn’t have made the current situation any better.

Amy Baker, Coordinator of the Legislative Office of Economic and Demographic Research, lent some nonpartisan credence yesterday to the Republican’s version. In an email that House leaders distributed to reporters, Baker said that even if Florida had accepted the $444 million, “the 2010 tax rate would not have been affected” because the federal dollars would not have arrived in time. “The only impact in the current year (FY 2009-10) would have been to delay the need for federal advances by one to two months. Even so, the Unemployment Compensation Trust Fund would have ended the year in a negative position, thereby triggering a rate increase.”

House Minority Leader Franklin Sands, D-Weston, brought up the issue again this morning anyway. Responding to the new 11.2 percent jobless rate, he said: “Florida House Democrats remain hopeful that Republican leaders will drop their opposition to modernizing Florida’s Unemployment Compensation system and will join Governor Charlie Crist in approving the use of $444 million in federal stimulus to assist the growing-number of jobless Floridians.

“These dollars will be spent helping families buy food, pay rent and will generally boost economic activity and retail business throughout the state ... It is time that Republican leaders begin working on bipartisan solutions that will put Florida back to work.”