NFIB/California Issues Statement on Democratic Plan to Enhance Unemployment Insurance Benefits

CONTACT: Michelle Orrock, 916-448-9904

SACRAMENTO, Calif. -- The National Federation of Independent Business/California issued the following statement today in response to the announcement from Democratic legislators that they are proposing to increase unemployment insurance benefits.

"Economic stimulus by definition creates more job opportunities," said John Kabateck, NFIB/California executive director. "Unfortunately, this plan does nothing to create or retain a single job at this critical time in California's economic history, and will in fact put California's beleaguered Unemployment Insurance Trust Fund deeper in the hole."

"California's Unemployment Insurance Trust Fund does need significant reform and modernization and federal dollars would help bring about that change. However, even if the pending federal legislation were to pass as written, California would not reap any funds or jobs in time to help the state's economy."

"If California is to recover from the devastating financial crisis that it is facing, we must first provide small business owners with flexibility and incentives to create new jobs in the communities where they live and work. We urge the legislature to go back to the drawing board and come up with a solution that truly supports and works for California's job creators -- small businesses."