Republican and Democratic legislators alike say they don’t understand why Florida hasn’t acted yet.
TALLAHASSEE — Although Florida has some of the lowest unemployment payments in the nation, Gov. Ron DeSantis remains undecided about whether to ask for the stripped-down federal benefits recently authorized by President Donald Trump.
Eleven states have applied for a $400 weekly extra unemployment payment program, which was initiated following Trump’s expansion of jobless aid via executive action. Florida, however, remains on the sidelines and it could stay that way.
The longer the DeSantis administration delays, the longer it will take for hundreds of thousands of out-of-work Floridians to receive the extra help Trump promised — if the state eventually does apply for it. There is also a risk that the limited federal funding available could run out before the state acts.
But the delay speaks to the conundrum that Trump’s actions pose for Florida, a state led by a key campaign ally of the president. While extending the benefits could pump tens of millions into the battleground state’s economy, the federal proposal could prove extremely costly — and unwieldy — for the state to carry out given the rules surrounding the effort.
When asked about the funding on Thursday, a spokesperson for DeSantis did not say when — or if — Florida plans to act.
“Florida is currently reviewing guidance issued by the Department of Labor and the Federal Emergency Management Administration to determine the best course of action that will preserve the state’s financial stability while providing important assistance to Floridians in need,” said Cody McCloud, a spokesperson for the governor.
Republican and Democratic legislators alike say they don’t understand why Florida hasn’t acted yet.
“We should be exploring every option and following the lead of other states that have been successful,” said State Sen. Jeff Brandes (R-St. Petersburg).
Florida’s tourist-based economy collapsed amid the coronavirus pandemic and the forced business shutdown. More than 3.5 million Floridians have filed jobless claims since mid-March — including another 66,000 who filed their initial claim last week. The state has paid out more than $13 billion in the last five months, but most of that money has been an extra $600 a week payment that Congress included in the CARES Act. That extra payment expired at the end of July, but the House and Senate have been at odds over a new coronavirus relief package.
Trump stepped in and authorized dipping into $44 billion worth of disaster relief funds to pay for a new round of extra benefits. DeSantis last week suggested he was considering having Florida apply to FEMA to receive what is being called “lost wages assistance.”
The problem, however, is that the FEMA aid requires 25 percent matching money from states. Initially Trump suggested states could use unspent money that was part of the CARES Act but DeSantis has told the White House that such an approach could not work. The governor plans to use the more than $5 billion sent to Florida to help pay for coronavirus response and to patch holes in the state’s budget.
Federal authorities then told states they could use money they are already spending on state unemployment benefits to count toward the matching requirement. But there are complications with that approach as well. The first obstacle is that money spent by the state must be on or after Aug. 1.
That’s a problem because Florida benefits — which pay out a maximum of $275 a week — are capped at 12 weeks. Congress authorized additional payments to workers whose state benefits are exhausted but those are paid entirely out of federal aid. Many jobless Floridians already have rolled over from the state program to the federal one. Florida’s budget is in tatters and there’s no other place the state could easily get the matching money. DeSantis suggested that the state could perhaps borrow money for its unemployment trust fund, but such a move risks triggering tax hikes on employers.
Rich Templin, director of politics and public policy for the Florida AFL-CIO, said all the complications with the extra aid show that it’s “not a workable solution.”
“This really seems like a campaign soundbite just to get us through November with no real understanding how this will work,” Templin said.
Rep. Evan Jenne (D-Dania Beach) saaid DeSantis still needs to act quickly and take care of Floridians reeling from the economic collapse.
“If Donald Trump is going to offer him a bucket and a mop then he needs to take the bucket and mop and clean up the mess,” Jenne said.
This blog originally appeared at Politico on August 20, 2020. Reprinted with permission.
About the Author: Gary Fineout came to POLITICO Florida in February 2019 after spending more than two decades covering Florida politics and government.
