Alaska Senate adds unemployment benefit increase to insurance bill

The Alaska Senate amended an insurance bill Wednesday to raise the state's maximum weekly unemployment benefit to $470.

The change came during final day debate on Senate CS for CS for House Bill 302. The bill dealt with insurance law, including travel insurance, rebates and Division of Insurance authority. Senators used the floor debate to take up unemployment benefits.

Sen. Jesse Kiehl offered an amendment that would have raised the maximum weekly unemployment benefit to $525. He withdrew that version after objections that it would raise employer unemployment insurance costs too sharply.

Kiehl then offered a second amendment setting the maximum benefit at $470. Debate described that number as more sustainable. The Senate adopted the second amendment.

Supporters said Alaska's unemployment benefits have not kept pace with costs. They said the unemployment insurance trust fund has more money than needed for solvency. Opponents warned against increasing benefits faster than wages for people who are working.

The amendment moved the benefit increase forward as part of HB 302.