Evening star., 1962-08-23
Virginia Hits
Idea Of More
JobIess Aid
BY ROBERT X. WALSH
Star Staff Writer

| A Virginia Employment Com
mission spokesman told the
House Ways and Means Com
mittee today that another
round Of emergency jobless aid
benefits was neither needed
nor justified in his State.
Opposing President Ken
nedy's proposal for additional
unemployment compensation
for jobless workers who ex-
haust their regular benefits be-
tween next October l and
March 81. State Assistant At
torney General Harold V. Kelly
said this would require Virginia
employers to pay SIS million
in additional taxes to finance
the program.
Mr.. Kelly, chief counsel for
the employment commission,
estimated that Virginia en-
ployers would have to pay about
So in taxes FOR every 81 Of ex-
tended benefits to unemployed
persons in that State.
He said the plan would be Of
doubtful value in bridging the
unemployment gap in Virginia.
He said it also would hinder
the States new benefit scale
which goes into effect in
October.
Officials Testify
Mr.. Kelly was one of a dozen
officials from various states
who testified at the second of
three days of hearing being
held today. Most of the wit
nesses said there was 10 need
for another emergency pro-
gram similar to the emergency
plan voted by Congress last
year.
At the opening of hearings
yesterday. the committee heard
Secretary of Labor Goldberg
urge Congress to enact such a
bill this year.
AS advocated by Mr.. Gold
berg, the legislation would
closely resemble a measure
enacted last year for Federal
payments to jobless workers
who used up all their regular
unemployment compensation
benefits. That emergency pro-
gram which expired in April
permitted up to 13 additional
weeks of joblesS aid pay, pro-
vided no person received Fed
eral-State compensation for
more than SO weeks.
The Labor Secretary, how
ever. explained to the House
I committee that this further
Federal emergency aid to quail
flied unemployed persons who
exhaust their State unemploy-
ment compensation between
next October l and March 81
was needed for an additional
major reason now.
Pace to Continue
He said that since the expi-
ration Of the 1861 program al.
most 100000 men and womer
have used up their State bene-
fits. He estimated this will con-
tinue at the rate of more than
100000 a month for the rest of
this year and well into 1863.
He reported that last month
almost a million workers had
been out of work for IS weeks
or longer and more than
100000 had been jobless for at
least six months. At the same
time, he said. there is no gen.
eral economic recession and to-
tai unemployment has greatly
decreased since last year.
Questioning Of Mr.. Goldberg
brought out that the proposed
extended program would cost
about 1924 million. 1t also dis
closed that the 1861 program
cost $172 million less than ex-
pected.
Congressional advocates Of
the program said later they
were encouraged by Mr.. Gold
berg'S suggestion that the $l72
million be applied to the esti-
mated cost of the additional
program. They said this would
require only $62 million in add
ed revenue and call for an in
crease of only .05 of l per cent
in the unemployment compen-
sation tax instead of a of one
per cent.