State rushes to interpret orders
Governor: Colorado can cover its share for two to three weeks
Colorado’s state government scrambled Monday to understand a series of weekend executive orders by President Donald Trump and what they mean for unemployment insurance during the coronavirus pandemic and recession.
Trump signed an executive order Saturday that extends enhanced federal unemployment payments at $400 per week — down from a previous $600 — but only if states cover 25% of those costs. It’s unclear what happens to cash-strapped states, such as Colorado, that may be unable to chip in the extra $100 per week, or where the money for that $100 per week can come from.
“We are still awaiting technical guidance from the U.S. Department of Labor on options for implementation within the states,” the Colorado Department of Labor and Employment said in a statement Monday. “Until more information is provided regarding financing and state options regarding the $100 state contribution, we are unable to comment on the viability of implementation of this assistance program within the state of Colorado.”
During an afternoon news conference at Water World in Federal Heights — home to a new coronavirus testing site — Gov. Jared Polis said the state only has enough money to pay the $100 per week match for a couple of weeks.
“There’s no way that we would have more than two or three weeks, tops, of the ability to do that,” said the Democratic governor. “Perhaps it buys us a little more time for a better deal, a bipartisan deal between Republican and Democratic lawmakers, to be reached.”
“Given the budgetary constraints of the state, even that is really stretching our resources to the max,” the governor added a short time later.
The state is already in difficult financial straits, forced to cut $3 billion from its budget, and its unemployment trust fund is almost out of money. During a call with reporters Thursday, Ryan Gedney, a senior state labor economist, said Colorado’s unemployment fund has between $75 million and $100 million.
“(Unemployment) trust fund insolvency is likely this month,” he said.
That money in the state unemployment trust fund comes from fees on employers, and when it runs dry Colorado must borrow from the federal government. Ten other states have done so already and eight more have requested loans, Gedney said last week.
“I’m not quite sure what the federal government is trying to accomplish here,” said state Sen. Dominick Moreno, a Commerce City Democrat and experienced budget writer.
“The reality is that if we want to extend benefits, which I think are absolutely needed, it should be through a direct federal allocation, rather than this kind of bureaucratic process.”
U.S. Rep. Jason Crow, an Aurora Democrat, was even more blunt: “It’s not feasible. There’s no money, and that’s exactly the point. The president is looking at trying to get a political talking point, not an actual solution.”
Trump issued the unemployment assistance order and several other executive orders Saturday following weeks of unsuccessful deliberations between Democratic
congressional leaders and the Trump administration.
House Democrats have passed a bill to extend the $600-per-week unemployment supplement that expired Aug. 1, but Senate Republicans have not voted on it. Trump wants the extension to be less than $600 per week and for states to cover some of the costs.
“I applaud President Trump for showing leadership and putting the American people before partisan politics,” said Rep. Doug Lamborn, a Colorado Springs Republican.
“Democrats seem to be focused on implementing their own personal wish lists instead of getting Americans safely back to work.”
A spokeswoman for Sen. Cory Gardner, R-Yuma, said Gardner wants to extend unemployment benefits and also blamed Democrats for Congress’s failure to do so.
She did not say whether he supports Trump’s executive orders.
“The executive orders issued over the weekend,” said Rep. Ed Perlmutter, an Arvada Democrat, “fall woefully short of what hard-working folks and small businesses need right now, will end up costing already strained state governments more money, and cut assistance to individuals.”
The Denver Post reached out to all members of Colorado’s congressional delegation Monday. Only Republican Reps. Scott Tipton of Cortez and Ken Buck of Windsor did not comment on the president’s executive orders.
“Not only is there no constitutional basis for the president to even issues these executive orders,” said Rep. Diana DeGette, a Denver Democrat, “the orders themselves would do very little to help the millions of families and small business owners who are struggling most to make ends meet as a result of this pandemic.”
Reporter Aldo Svaldi contributed.