Middle-Class Families

Family security, the bedrock of healthy communities, has rarely been as threatened as it is by the current national economic recession. With record numbers of Washingtonians losing their jobs and applying for unemployment insurance, middle-class families across Washington are worrying whether they can make ends meet and maintain health benefits until we recover from the recession.

The public’s priority for lawmakers in 2009 was all about jobs — preserving them, creating them, and helping the unemployed regain them. We did all this, and for those who lost jobs, we worked to provide relief. We increased weekly unemployment benefits by $45 to directly and quickly help those who lost their jobs.

An extra $180 a month is now being placed into the pockets of our citizens who need it the most. This extra money will help those who are unemployed not have to choose between paying their heating bill or mortgage payment and also provide a modest stimulus to our economy. We also increased the minimum weekly unemployment benefit from $129 to $155. (HB 1906)

We helped workers and employers alike by expanding our state’s Shared Work program. This program pays partial unemployment benefits to workers who have their hours cut, helping workers continue to make ends meet and keeping employers’ workforces strong. (HB 1906)

When people lose their jobs, many also lose their health insurance. Washington has led the nation in fundamental change to our health care system. This session we set the stage for long-term health care reform in partnership with the Obama administration by creating an advisory group to monitor the status and outcomes of state activities related to health care reform. The Legislature also authorized state agencies to submit a federal request to expand the Medicaid program to cover more low income people. (SB 5945)

Most importantly, we took steps to drive down health care costs over time by having consumers, health providers and purchasers work together to establish uniform standards for how services are authorized and reimbursed. This will simplify the health care system, lower health care costs, and beat back inflation. (SB 5346)

Unsound lending practices, an epidemic that has brought our nation its knees, is no less a threat to middle-class families locally than it is nationally. The average payday loan is taken out to pay everyday expenses, not emergency needs. After taking out a loan for something urgent, like paying a heating bill, borrowers are often forced to take out additional loans to pay off the first loan – triggering a cycle of debt.

The payday lending industry has doubled in size since 2000, and 89 percent of all loans are made to repeat customers who take out five or more payday loans. In fact, it typically costs a borrower $793 to pay back a $325 payday loan — or more than twice the amount of the loan.

To protect consumers, we applied common-sense regulations to the payday lending industry. We limited the amount an individual can borrow at one time; implemented an installment payment plan for those who fail to repay their loans on time; prohibited those who default on loans from taking out additional loans until the initial loans are paid off; and will create a database to track outstanding loans per borrower and borrower eligibility. This measure will protect borrowers from falling into perpetual debt and help ensure that Washingtonians are not shouldering unfair financial burdens during this time of economic insecurity. (HB 1709)

We also sought to provide some relief to those who are already reeling from payday loans by prohibiting harassing, intimidating and abusive communications to collect loans. Additionally, collection officers now are barred from visiting a person’s place of employment and from impersonating a law enforcement officer or government official. (SB 5164)

Bad loans have also caused our state’s foreclosure rate to skyrocket. Foreclosure filings in Washington are up 48 percent from this time last year and we have the 17th highest foreclosure rate in the nation. The Legislature has made bold moves to help keep families in their homes.

We began a program to recruit volunteer professionals from around the state to help families and individuals with incomes at or below the county median income level renegotiate their mortgage terms. (SB 6033)

The Legislature also gave homeowners a 30-day extension in the foreclosure process for homes bought between 2003 and 2007 and required lenders to make reasonable efforts to contact borrowers to develop alternatives to foreclosure. The same measure gives tenants in properties that are being foreclosed official notification and 40 extra days to move out.

The public believes that family security means supporting families, not discriminating against them. That is why we extended all state rights and responsibilities granted to married couples to domestic partnerships. Legislation in previous years extended basic rights and responsibilities to domestic partners, but hundreds of other rights continued to be denied.

Now, domestic partners have new rights dealing with pensions, unemployment benefits and insurance claims. As Washington families face historic economic insecurity, now more than ever, it is imperative that all Washingtonians have the same rights, responsibilities and protections under the law. (SB 5688)