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Domestic Security: Federal government must help states provide economic and personal security.
by Henry Bayer
Executive Director
October 31, 2001
GOV. GEORGE RYAN recently described two fronts of one battle in the state of Illinois.One is the increased need to be prevent and respond to terrorism on a state level, and the other is the growing decline in state revenues.
Gov. Ryan said he needed $40 million to increase the state's terrorism preparedness--an amount that strains an already stretched state budget. And Illinois is not unique; states across the country face the same challenge. If we are to avoid a domino-like cascade of state-level fiscal crises in the coming months, the federal government must respond with speed and strength.
Congress can begin by providing funds to state and local public health departments for tools to combat bio-terrorism. It should provide grants to state and local governments to enhance security on our mass transportation systems, water filtration plants, nuclear plants, public buildings and other sites that are likely terrorist targets.
On the economic front, Illinois' projected loss of nearly half-a-billion dollars in revenue is being repeated in state after state, at the same time that demands for state services are increasing. In the week ending Sept. 22, unemployment claims jumped 34 percent from the previous week in Illinois. As layoffs continue to mount, the demand for unemployment compensation, food stamps, energy assistance and other forms of aid will undoubtedly grow.
When disaster struck the World Trade Center it was American workers—airline attendants and pilots, firefighters, police, emergency medical personnel, ironworkers and other building trades who were on the frontlines. Congress has already acted to bailout the airline industry, and scores of other industries are now pressing for subsidies and/or tax breaks. Shouldn't those American workers who are the victims of a faltering economy also be able to count on the federal government for targeted economic assistance?
Many workers who have never before been laid off will be encountering the unemployment insurance system for the first time. They are in for an unpleasant surprise. Currently, only about 40 percent of the unemployed receive unemployment insurance benefits at all. The maximum weekly benefit for unemployed workers who qualify in Illinois is not even 50 percent of the state average wage. Few laid-off workers will be able to afford to keep their health coverage through COBRA, which provides access to their former employer's plan but no financial assistance. A report released early this year estimated that the five states with the most unemployed people—California, Illinois, New York, Pennsylvania and Texas—might not have enough reserves to pay for five months of benefits if we have a deep recession.
While President Bush and Congress are fulfilling their responsibility to hunt down terrorists around the globe, they have not yet joined the battle to assist states that are engaged in the war at home. Before this economic crisis deepens, they need to:
- Encourage states to broaden unemployment coverage, increase benefit levels, and extend maximum benefit periods by offering federal unemployment trust funds for states that make these important reforms.
- Treat all workers fairly. Workers who have been laid off due to Sept. 11 attacks should not be narrowly defined for the purposes of qualifying for benefits. Hotel housekeepers laid-off due to half-empty hotels deserve to collect unemployment as much as laid-off airline mechanics.
- Help states serve families who have lost jobs by providing them with additional funds to enroll them in Medicaid and the State Children's Health Insurance Plan.
- Increase funding for programs that will face heavy demands, including energy assistance, food stamps and other social services.
- Provide financial aid to state governments and local municipalities so that the decline in state revenue doesn't contribute to a recession or inhibit our ability to fight terrorism.
America's working families are the backbone of our democracy and our economy. If President Bush and Congress really want to get the nation's economy back on track, they must enact a stimulus package that will not only allow states to provide for our physical security, but will also protect our economic well-being.
Henry Bayer is the executive director of the American Federation of State, County and Municipal Employees Council 31.
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