Pa. Senate committee OKs short-term fix for unemployment-compensation system

HARRISBURG - The Pennsylvania Senate on Tuesday began moving to authorize short-term funding for the state's unemployment-compensation system, after a dispute between Senate Republicans and the Wolf administration led to layoffs of system workers.

The Senate Labor and Industry Committee approved the legislation, which would allow $15 million from the state's unemployment-compensation trust fund to be used on the system, as a "short-term fix," said committee chair Kim Ward (R., Hempfield).

Ward said the infusion of money would allow the administration to bring back workers who were laid off after the Senate declined to take up a bill that would have authorized the use of $57 million. But she said it would only provide for the workers for a temporary period.

J.J. Abbott, spokesman for Gov. Wolf, said in an email that the administration is "evaluating the impact of a potential short-term infusion of resources," and that a short-term funding bill without a "long-term solution" could cause "chaos" in the unemployment-compensation system.

"The governor would prefer a long-term solution for this funding but this is a good step toward that goal," Abbott said.

The bill has a way to go before it could become law.

Jennifer Kocher, spokeswoman for Senate Majority Leader Jake Corman (R., Centre), said there is no schedule yet for the full Senate to vote to send the bill on to the House.

Without the approval of the additional funding, the Department of Labor and Industry in December closed three call centers and laid off nearly 500 employees. Some of those workers have been placed in state jobs and some have retired.

Auditor General Eugene DePasquale said in January that his office would conduct a performance audit of the fund that is at the heart of the dispute.

The state's unemployment-compensation trust fund provides benefit payments for up to 26 weeks to people who have lost their jobs through no fault of their own. It is funded by taxes on employers and employees.

Earlier this month, the state filed a lawsuit against IBM over an attempted upgrade of the unemployment-compensation system. The state says the project went millions of dollars over budget and years beyond schedule before officials stopped it.

klangley@post-gazette.com 717-787-2141