Was Gov. DeWine wrong to turn down extra federal unemployment dollars?
The U.S. Treasury is still writing $300 weekly supplemental unemployment checks to workers made jobless by the pandemic, but with Ohio facing a hiring crunch and many businesses unable to fill jobs, Gov. Mike DeWine has decided the state will no longer accept the supplements after June 26. Given the more than 325,000 Ohioans receiving the federal supplemental payments as of May 8, thats a nearly $1 billion revenue hit this summer, cleveland.coms Peter Krouse has calculated. That money could buoy retailers and grocers and even help keep people in their homes. The potential economic spinoffs might have been as much as $1.6 billion, Krouse found. Ask residents of Euclid, where refuse pickup has repeatedly been delayed in recent weeks -- reflecting a nationwide shortage of garbage workers, cleveland.coms Hannah Drown reports, along with a lack of replacement parts. Whats more, as businesses and factories reopen after the pandemic, theres a sudden scrum of employers all wanting workers -- leaving those offering the hardest or lowest-paid jobs scrambling. Cutting off the federal supplemental benefits wont necessarily cause all 327,554 Ohio recipients to rush out and find a job. Krouse said a recent San Francisco Federal Reserve Bank report concluded that the supplemental payments ... factor very little in a persons decision to seek or accept a job, even among low wage occupations.  Still, it could help. And DeWine has another problem -- the states insolvent jobless benefits fund, which is in in hock to the federal government for about $1.5 billion it borrowed to shore up the fund during the pandemic. DeWine has proposed making it whole again using pandemic relief dollars, but that means hes not anxious for it to continually be stressed paying out jobless benefits when so many jobs are not being filled. To that end, DeWine as of the week of May 23 also reinstituted the requirement that those receiving state jobless benefits show they are trying to find work. Leila Atassi, managing producer, public interest and advocacy:  Unemployment benefits wouldnt seem overly generous if employers were paying workers enough to survive. DeWine could have initiated a meaningful conversation about increasing wages statewide. But instead, his rejection of those federal unemployment dollars will force workers to accept starvation wages, rely on public assistance and return to living one misfortune away from financial ruin. Ted Diadiun, columnist:  Congressional Democrats insistence on continuing to pay people to not work is just crazy. It would be nice, but untrue, to say that in refusing the money, DeWine saved the American people a billion dollars. The Democrats will just try to buy votes by throwing it somewhere else. But kudos to the governor for trying. Thomas Suddes, editorial writer:  Turning down those dollars means, in effect, denying those dollars to Ohios economy -- that is, to Ohio businesses (i.e., employers). Thats unwise, and a mistake. We have studies which say the payments do not keep people from working. We also have studies which say the additional payments contribute to the overall state economy. Lisa Garvin, editorial board member:  Every business Ive patronized lately is hiring, and the lack of employees is glaringly obvious. While the pandemic has laid bare how many essential workers arent making a living wage, if unemployment assistance goes on too long, it can create a downward spiral of small businesses closing because of staffing issues. Victor Ruiz, editorial board member:  Turning down money that can help many people is cruel and out of character for Gov. DeWine. DeWine has shown creativity in motivating people, i.e., with Vax-a-Million, so he should show that same level of innovation in helping employers lure back workers, instead of denying money to those who need it the most. Mary Cay Doherty, editorial board member:  Absurdly, federal supplements can make unemployment more lucrative than working. We do not need federal taxpayer money to stimulate a booming economy or to pay people to stay home while jobs go unfilled. Kudos to Gov. DeWine and the governors of 23 other states for turning down the federal supplements. Lets get back to work. Elizabeth Sullivan, opinion director:  DeWine is right to prioritize getting people back to work, especially since the state unemployment benefits fund is broke, but I question his timing and tools. Denying people federal jobless supplements will only hurt them in the short term, while the governor has other means he can use to motivate job-hunting. * Send a letter to the editor, which will be considered for print publication. * Email general questions about our editorial board or comments on this editorial board roundtable to Elizabeth Sullivan, director of opinion, at esullivan@cleveland.com.