NFIB Praises Gov. Riley for Rejecting $99 Million in Stimulus Money

One-time incentive would lead to higher taxes on small businesses

CONTACT: Rosemary Elebash, 334-264-2261, or Todd Pack, 615-872-5897

MONTGOMERY--Rosemary Elebash, Alabama state director of the National Federation of Independent Business, praised Gov. Bob Riley Tuesday for rejecting a piece of the federal economic stimulus plan.

"Gov. Riley is doing the right thing by refusing the $99 million for federal unemployment assistance," Elebash said. "It's hard to turn down that kind of money, especially when other states are taking it, but Gov. Riley is correct when he says the money comes with too many strings attached."

Today, a full-time worker who is laid off is eligible for 26 weeks of unemployment insurance. Under the federal economic stimulus package, Alabama would get $99 million for unemployment insurance as long as the state expands coverage to include workers displaced because his or her spouse moves for a job and workers who lose their jobs because of a family emergency.

"The plan sounds good at first, but it would cost us money in the long run," Elebash said. "Once the stimulus money runs out, Alabama would have to pass a tax increase to keep funding the benefits. Alabama's small businesses can't afford that."

Small business accounts for 97 percent of the state's employers, according to the U.S. Small Business Administration.