Sen. Carolyn Allen has changed her mind about Governor Napolitano’s role in legislation to increase unemployment benefits.

The governor last year vetoed the increases, objecting to eligibility restrictions placed in Ms. Allen’s bill by the House. Supporters of the bill accused the governor of bowing to pressure from labor unions that opposed the bill.

During negotiations, Ms. Allen, R-8, accused Ms. Napolitano of being “a bit heavy handed” and having a “czarina attitude.” Things turned around, however, this month when Ms. Allen, business and labor lobbyists and Ms. Napolitano worked out a compromise bill, which was recommended 8-0 by the Senate Commerce Committee April 7.

Ms. Allen, who has tried for two years to get the bill passed, credited all sides with breaking a several-week impasse. She praised Ms. Napolitano for “stern” leadership in the matter, including demanding that business and union representatives attend a meeting in her office April 1 and insisting on an agreement. At one point, Ms. Allen said, the governor took one of the parties, who was balking at the proposed agreement, into a separate room to talk.

“It was a command performance,” the senator said. “She put on her lawyer hat. She’s very good.”

The Governor’s Office would not comment on the negotiations.

Bill Increases UI Benefit To $240

The bill, which is a “strike-everything amendment” to H2440, increases the maximum weekly unemployment benefit to $240 beginning July 1. The current maximum of $205 is the lowest in the nation.

Several provisions that had hung up negotiations were finally agreed to, Ms. Allen said. They are:

• Elimination of a one-year incremental increase to the $240 maximum.

• Reduction of an eligibility requirement to 13 weeks of work instead of 20 weeks.

• Beginning Jan. 1, 2005, severance pay will be accounted for in determining when benefits may begin, and union contracts changes must reflect that.

• Elimination of “seasonal” employment provisions.

Ms. Allen said one issue remains: a possible amendment sought by the National Federation of Independent Business to reduce unemployment benefits paperwork required of employers.

“ I don’t think this will kill the bill,” she said, unless NFIB decides to lobby hard for the change.

Expected To Pass Senate

The bill now heads to the full Senate, where it is expected to pass.

And, “I believe we are going to get this out of the House,” Ms. Allen added.

Senate Commerce Committee Chairman Barbara Leff, R-11, said she had concerns about the potential increase in unemployment taxes on small business employers from the increase in benefits.

“I personally have a concern knowing that the rate has gone up once and it could go up again,” said Ms. Leff who, nevertheless, voted to forward the bill.

Ms. Allen acknowledged the possibility of an increase of one-tenth of 1 per cent, but said the Legislature must act now or business and union groups might launch a petition drive to place unemployment benefit increases on the general election ballot.

Commenting on the possible unemployment tax increase, Scott Peterson with the Arizona Chamber of Commerce said, “We’re comfortable with what the impact will be.”

Sen. Ken Cheuvront, D-15, who owns two businesses, said the benefit increases are needed.

“It’s the right thing to do,” he said, “and bring ourselves up to respectable levels.” —