Bush OKs Talks on New Jobless Benefits Bill

In an apparent reversal that could break a three-month impasse between the White House and Congress, President Bush gave a green light Tuesday to negotiations on potential compromise legislation to extend jobless benefits for 3 million unemployed Americans.

Bipartisan discussions began immediately among key Senate and House leaders to draft new legislation acceptable to both the President and Democratic sponsors of a pending $5.3-billion measure to provide up to 13 weeks of extra benefits for the long-term unemployed.

The President’s decision follows last week’s White House compromise with Senate leaders on civil rights legislation, a dramatic development that overcame two years of deadlock over a bill to combat job discrimination.

Bush’s willingness to put aside concerns about the cost of providing extended benefits appeared to reflect growing concerns that the economy could become a potent political issue in next year’s elections.

House Minority Leader Robert H. Michel (R-Ill.) said the jobless benefits legislation was discussed by Republican leaders during a lunch meeting at the White House on Monday. Later, Michel said, Bush telephoned him to pursue the matter further.

“The gist of that conversation was to get our heads together (with Democratic lawmakers) and craft a compromise acceptable to him,” Michel told reporters.

Democrats welcomed the compromise efforts, although some of their remarks had a partisan edge, reflecting previous plans to use the issue in next year’s elections.

“The President has just reversed himself on civil rights and if he’s now prepared to reverse himself on unemployment (benefits), we’d be very happy at that,” said Senate Majority Leader George J. Mitchell of Maine. “I think the President has been adamant and wrong, and that has resulted in millions of Americans not receiving their (unemployment) insurance.”

House Speaker Thomas S. Foley (D-Wash.) was somewhat more conciliatory, saying that he thinks Bush now recognizes that America’s long-term unemployed “desperately need some benefits” because jobs are scarce in a weak economy.

“We’re determined to pass an unemployment compensation bill, and this may offer some opportunity to move the legislation with presidential approval,” Foley told reporters.

Congress twice has passed similar legislation designed to aid victims of the recession who have exhausted the standard 26 weeks of unemployment benefits. Bush blocked the first attempt by refusing to declare a budget emergency, and his veto of the second bill was sustained in the Senate by two votes.

The President complained that the legislation was not needed because the recession was over and the two bills would have scuttled the budget agreement worked out last year by the White House and congressional leaders.

The House was expected to give overwhelming approval next week to a third version of the jobless benefits legislation. With the Senate sure to follow suit, the measure appeared certain to force another veto showdown with the President.

In the past, Bush has insisted that he would sign only an alternative proposal by Senate Minority Leader Bob Dole (R-Kan.) that Democratic leaders rejected as inadequate to meet the needs of the unemployed.

The latest Democratic-sponsored bill would extend jobless benefits for seven weeks in states with average unemployment of less than 7% in the previous six months. States with higher levels of unemployment during the same period would be eligible for 13 extra weeks of benefits.

Costs of the measure would be paid for over the next five years by raising the taxable wage base for unemployment insurance from the current $7,000 a year to $7,700 a year from 1993 through 1996. The Administration, however, objected to that provision because of fears that the payroll tax increase would depress the economy and slow job growth.

The Bush-backed bill would extend benefits for six weeks in most states and up to 10 weeks in states hit hardest by unemployment. It would raise its estimated $3-billion cost by auctioning federally owned radio spectrum bands.

Outlines of a possible compromise remained unclear although extension of jobless benefits for up to 13 weeks seemed likely, along with some method of financing them to meet Bush’s previous insistence on a pay-as-you-go bill.

Fresh reports of a sluggish economy, along with polls indicating that Bush’s approval rating has declined sharply in recent weeks, may have influenced the White House thinking on additional benefits for those who are without jobs. “The Administration can read the polls too,” said a House Democratic aide.

Reacting to Michel’s move, House Ways and Means Committee Chairman Dan Rostenkowski (D-Ill.), and the Democratic leadership agreed to place an indefinite “hold” on the latest Democratic jobless benefits bill to see whether a compromise can be negotiated in the next few days.

Similarly, Sen. Lloyd Bentsen (D-Tex.), chairman of the Senate Finance Committee, opened discussions with Dole on a middle-ground bill that the President would sign.