Catherwood LibraryILR School

Citing the sudden increase in unemployment due to the September 11 attacks, Governor Davis---who vetoed similar legislation last year---today signed a bill increasing unemployment benefits and expanding coverage of part-time workers. The measure was hailed by union leaders who have long fought for an increase in unemployment benefits that were among the lowest in the country despite California's high cost of living. While accepting the impetus lent to such legislation by the large number of jobs lost in the past 3 weeks, business leaders fear that the current surplus in the state unemployment fund will run out sooner than expected and tax increases will ensue.