Mixed reaction seen on Clinton newborn policy

Tuesday, June 13, 2000 | 10:47 a.m.

CARSON CITY -- Gov. Kenny Guinn is not ready to endorse a plan by President Clinton to allow the states to pay unemployment benefits to workers who take unpaid time off to care for a newborn child or a sick relative.

"I'd have to see the ramifications of that," Guinn said Monday when asked if he supported the plan announced this weekend by the president.

The governor said he has not had a chance to view the proposal outlined Saturday by the president.

The Labor Department, at the orders of Clinton, will amend its regulations on June 20 to give states the options to provide paid leave for parents of newborns.

Bob Fulkerson, a spokesman for the Progressive Leadership Alliance of Nevada, said program is something the organization could support before the 2001 Legislature.

"Anything that allows parents to spend more time with their children is good," Fulkerson said. "If you just make it from paycheck to paycheck, it doesn't do any good," referring to the present law of unpaid leave. "The preponderance of workers in Nevada are in that category."

Carole Vilardo, executive director of the Nevada Taxpayers Association, said Clinton's plan is "nice public policy" but it comes with a price tag.

The primary purpose of the state fund is "a safety net" to help an individual while he or she searches for a job, Vilardo said. And the fund is required to meet federal and state solvency tests to make sure there is enough money to carry out the main function.

The trust fund, which was last measured on Sept. 30, totaled $464.8 million. It was so healthy that the state was able to reduce the average tax rate from 1.4 percent to 1.29 percent for employers who pay premiums into the program.

Fifteen states are considering whether to provide paid leave to workers who want to stay home after the birth of a child.

An estimated 20 million people have taken advantage of the 1993 federal Family and Medical Leave Act to allow a parent to stay home to care for a newborn or for a sick relative. Clinton said more would benefit from the law if they were paid when they took this time off.

There is no estimate in Nevada how many people have taken advantage of the law.

Vilardo said if the new option is enacted, somebody would have to pick up the tab, such as a surcharge on all employers or charges could be imposed on the individual business, depending on their rating category.