The Iowa Federation of Labor AFL-CIO has planned to rally in downtown Des Moines Wednesday morning to demand U.S. Sen. Chuck Grassley, R-Iowa, support the jobs bill in order to “prevent layoffs and loss of unemployment benefits.”
Grassley has said he would support the jobs bill — which among other provisions would extend unemployment benefits that expired in May and maintain an increase in the Federal Medicaid Assistance Program — if Democrats can offset its costs by using federal stimulus money or by cutting expenses elsewhere. Republican opposition has been based on a hesitance to increase the national deficit, and the latest version of jobs bill would have added $55 billion to the nation’s $1.4 trillion deficit over 10 years, according to the Congressional Budget Office.
The U.S. Senate could not muster the 60 votes needed last week to overcome a GOP-led filibuster.
Failure to pass an unemployment extension would mean around 1,500 to 2,000 Iowans a week will begin losing their unemployment benefits, according to Iowa Workforce Development. Analysis by the Iowa Fiscal Partnership found direct spending for unemployment insurance included in the federal stimulus, along with ripple effects from that spending, produced $501.7 million increased economic activity for the Hawkeye State and $112.1 million in income in 2009, creating or saving 3,727 jobs.
If the Medicaid extension is not passed, the Legislative Services Agency has estimated the state will be faced with a $121 million budget hole. Federal mandates on eligibility will limit options for cutting within the Medicaid program, leaving lawmakers with a choice of increasing revenues through taxes and fees, cutting other departments/programs or tapping the state’s cash reserves to balance the budget.
“Without the funding, Iowa will be forced to lay off thousands of teachers, police officers and nurses, among others, putting public health and safety at risk,” said Ken Sagar, president of the Iowa Federation of Labor AFL-CIO, later adding : “It’s time for Congress to stop playing politics with people’s lives and our economic recovery. Pass the jobs bill now before all hell breaks loose.”
The rally will be held outside the offices of Iowa Workforce Development (430 E. Grand Ave., Des Moines) Wednesday at 10:30 a.m.