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Thursday
May 24th

Christie wants N.J.’s $1.2 billion unemployment benefits' debt forgiven by Obama

dollar121709_opt_copySen. Menendez says he doubts that would happen

UPDATED

Gov. Chris Christie said Monday he wants the federal government to forgive the state government's growing $1.2 billion unemployment benefits debt.

The governor offered the comment following an hour-long meeting at the Statehouse with New Jersey's 13-member congressional delegation and Sen. Robert Menendez (D-N.J.).

Menendez said he doubts the Obama administration would forgive the debt.

With the state's unemployment rate running at 10.1 percent, it ran out of money last year to finance jobless benefits and has been borrowing money from the federal government. The insolvency in the state fund was created by the demand for benefits and governors and the Legislature diverting $4.6 billion of the money between 1992 and 2006 to fund the financially-strapped government.

The Legislature is considering a proposed amendment (SCR-60) to the state Constitution that, if approved by voters, would require the state to end the practice of diverting unemployment funds. Christie supports the measure. Presently, state law enables officials to borrow money for jobless benefits until 2015. Christie proposed Friday that the borrowing cease in 2013.

As part of his effort to restore the unemployment fund to solvency, Christie also wants to cut the weekly unemployment benefit from $600 to $550 and impose an average unemployment benefit levy on employers of $117 per employee, an amount much lower than the $400 to $683 per employee they may have to pay beginning July 1.

Christie is looking for a break from the Obama administration when he may not get it from Senate Republicans.

ABC reporter Jonathan Karl in Washington reported this exchange Monday with U.S. Sen. Jim Bunning (R-Ky.).

Karl said an angry Bunning refused to answer questions from ABC News about his decision to block a bill extending unemployment benefits. The exchange took place as Bunning was getting into an elevator in the Hart Senate Office Building.

"Excuse me! This is a senator's only elevator!" Bunning thundered,'' Karl said. "I tried again to ask his reasons for blocking the bill, Bunning said he already explained his reasons last Thursday, when he said he wanted the $10 billion cost of the bill to be paid for, rather than simply adding to the national debt.
"Excuse me!" Bunning yelled. "I've got to go to the floor!"

"As the doors closed, I asked Bunning if he is concerned about those losing their benefits,'' Karl said. "He did not answer. This is all on-camera.

"Senator Bunning was even more expressive before the cameras arrived, using a little sign language. When Senate producer Z. Byron Wolf spotted Bunning exiting his office, Bunning said, "I'm not talking to anybody." When Wolf asked him to stay and talk to our cameras, Bunning walked toward the elevator and shot the middle finger over his head.''

— TOM HESTER SR., NEWJERSEYNEWSROOM.COM

 

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