By a vote of 81-38, the Florida House passed a measure to reform the state unemployment compensation (UC) system now drowning in red ink.

It also engaged in its first substantive debate of the 2011 session, with Republicans arguing the reforms would spur job growth and Democrats insisting they will hurt unemployed Floridians.

The measure, which still needs to pass the Senate, will reduce unemployment compensation payouts from 26 weeks to 20 weeks -- and down to 12 weeks if the unemployment rate drops below 5 percent. The measure also will require Floridians receiving unemployment benefits to take skills assessments.

Soon after the vote, Gov. Rick Scott released a statedment: “I commend the House for taking the lead on reforming the unemployment compensation system. The House’s legislation reduces taxes on Florida businesses and ensures that we have the necessary safety net for those who are out of work."

The governor continued, "By linking the number of weeks a person can receive benefits to the state’s unemployment levels, we are creating an environment for Florida ’s job creators to get the state back to work.  I want to thank Representative Holder, House Majority Lopez-Cantera, and Speaker Cannon for their prompt attention to this issue, and I look forward to the Senate tackling unemployment compensation as soon as possible.”

Earlier on the floor Rep. Doug Holder, R-Sarasota, who introduced the bill, said, “This bill is about tax relief to help business retain jobs.”

The House had agreed to an hour-long debate, giving both sides 30 minutes apiece to argue the bill's merits.

Rep. Dorothy Hukill, R-Port Orange, kicked off the debate and served as the floor manager for the Republicans.

“Our unemployment compensation system is fractured,” said Hukill, who insisted that businesses would face tax increases if the measure was not passed. “There is no silver bullet to solve every single problem in the unemployment compensation system.”

Hukill praised the measure for helping usher “an environment that fosters business innovation and, more importantly, business growth.”

After Hukill spoke, House Democrats started their first round of arguments.

Democrats, with Rep. Jim Waldman of Coconut Creek as floor manager, countered with  Rep. Scott Randolph of Orlando who attacked the measure for helping out-of-state companies instead of out-of-work Floridians. 

“Are we going to stand with Floridians or Wall Street” demanded Randolph, who insisted that the measure would help investors more than working-class residents of the Sunshine State.

“This bill tries to do too much, too soon,” said Democratic Leader Pro Tempore Joe Gibbons of Pembroke Pines, who attacked the skills assessments requirement.

Rep. Luis Garcia, D-Miami, praised some aspects of the bill but said the time was wrong to cut benefits with so many Floridians out of work. Garcia quoted former President George H.W. Bush, calling the measure “voodoo economics.”

“This is not the time to crush down on the middle class and the lower middle class,” said Rep. Evan Jenne, D-Fort Lauderdale.

Republicans countered with arguements that the bill would help businesses recover and lead to more jobs in the Sunshine State. 

Conservative Rep. Ritch Workman, R-Melbourne, who praised the measure, argued that it would help pave the road to recovery. 

“High business taxes equal higher business taxes and increased layoffs,” said Workman. “Our businesses drive our economic recovery.”

Workman pointed to his own record as a small-business man to opposed Randolph’s comments.

“I am not a rich Wall Street fat cat,” continued Workman. “I am a small-business owner.”

Rep. Steve Precourt, R-Orlando, also backed the measure, noting that current Floridians receiving unemployment benefits would not be impacted. Precourt praised the assessment component, arguing that it would help link Floridians to jobs.

After Precourt spoke, Waldman led more Democrats to oppose the measure. They argued that the measure would hurt Floridians who needed help during the continuing recession. 

“The unemployed are victims of this recession,” said Rep. Geri Thompson, D-Orlando. “They are not the cause of it.”