State legislators in Juneau are resuming work on bills that would increase the weekly unemployment compensation benefit levels in Alaska. The Senate Labor and Commerce committee held hearings Jan. 19 on Senate Bill 136, which would increase weekly benefits from $248 per week to $300 per week. The legislation is sponsored by Sen. Johnny Ellis, D-Anchorage.
Alaska is ranked 48th out of 50 states in weekly unemployment compensation benefit amounts, Ellis told the committee in opening remarks. The maximum amount hasn't been increased since 1997 and the low levels of the payment is contributing to the loss of skilled workers in seasonal industries who are seeking alternative employment in other states and not returning to Alaska, he said.
Alaska is well below the amounts of unemployment benefits paid in other states. While the maximum benefit under current law is $248 per week, the average actual benefit amount during 2004 was $193.71, the senate committee was told by Paula Scavera, legislative liaison with the state Department of Labor.
In contrast, the average weekly unemployment benefit paid in Washington state was $309.76 that year, she said. Washington's maximum benefit is $496. In 2005 Massachusetts had the highest maximum benefit allowed, at $528, Scavera said.
Rep. Harry Crawford, D-Anchorage, also spoke in favor of the bill and told the Senate committee that a House version that he sponsored, House Bill 7, had reached the House Rules Committee late in the 2005 legislative session.
Originally the House bill raised the benefit to $335 per week, but Crawford agreed to a lower amount of $300 in a compromise with the Alaska State Chamber of Commerce and others who had been working to extend the waiting period from six weeks to 12 weeks on qualifying for unemployment benefits for workers who have quit jobs or been fired.
Crawford said the compromise involved the agreement of the sponsors and supporters of the legislation, mainly organized labor, to accept a lower benefit amount to keep the waiting period at the six weeks specified in current law.
Very few unemployed workers can afford to wait 12 weeks, or three months, to file for unemployment, Crawford said.
"We're in a crisis situation. We're losing too many trained people to the Lower 48, and this is costing employers and labor here," he said. "It costs $40,000 to $60,000 to train an apprentice ironworker to journeyman status, and we're losing people to San Francisco, Portland and Seattle, where the wage scales re higher but the living costs are lower."
The labor and commerce committee held the bill for consideration, but its chair, Sen. Con Bunde, R-Anchorage, said he would bring up SB 136 for further hearings soon.
Tim Bradner can be reached at tim.bradner@alaskajournal.com.
