The Mississippi Democratic Party is calling on Mississippians to contact Gov. Barbour and Lt. Gov. Phil Bryant and ask them to work with the Democratic leadership to provide unemployment benefits to those in our state who are struggling in this economy. Gov. Barbour is trying to blame the House, but this appears to be little more than spin.

Gov. Barbour can be reached at 601-359-3150 and Lt. Gov. Bryant at 601-359-3200. We need to ask them to stop playing politics at the expense of the unemployed and work with Democrats in the House to provide unemployment benefits.

What follows is a press release from Rep. Rufus Straughter, chairman of the House Labor Committee:

Chairman Rufus Straughter is calling on Governor Haley Barbour and House and Senate Republicans to support Mississippi’s working families instead of playing a dangerous game of national politics with benefits for workers.

The debate stems from House Republicans and the Governor’s refusal to compromise for the State of Mississippi and receive more than $56 million dollars in federal support while ensuring that the Mississippi Department of Employment Security (“MDES”) is reauthorized.

“I question Governor Barbour’s refusal to accept $56.1 million that would support small businesses and 40,000 Mississippi families who are struggling in this recession, especially when the Governor has already spent $832 million in recovery funding,” Chairman Straughter said.

MDES is responsible for administering the state’s Unemployment Insurance program and is required by state law to be reauthorized every two years. If the agency is not reauthorized, the U.S. Department of Labor will take over the collection of unemployment taxes for Mississippi businesses.

“It would be unfortunate if the Governor allows this important state agency to be taken over rather than accept critical resources during the worst recession since the great depression. This money will generate over $120 million in economic activity for our communities by helping Mississippi businesses save and create jobs,” Chairman Straughter said.

If MDES is taken over by the Department of Labor, taxes on businesses will increase to 6.2% per employee, resulting in a $413 million tax bill for Mississippi businesses.

“I am opposed to a tax increase and would like to see our families benefit from the State receiving the $56 million. In fact, these federal funds will not raise taxes on 90 percent of Mississippi businesses for at least four years.

“Unfortunately, House Republicans, with the Governor’s support, decided they would rather kill HB 1346 and risk the reauthorization of this agency than give $56.1 million worth of help to 40,000 Mississippi families,” Straughter said.

HB1346, introduced by Chairman Straughter, was both pro-business and pro-worker. It would have modernized Mississippi’s antiquated employment laws and reauthorized the state agency which administers employment benefits.

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