The unemployment fund has billions of dollars in it for this purpose.
The business and labor leaders, however, argue that the proposal does not end dependence on the unemployment fund quickly enough.
Of that, $155 million will come from the cigarette tax, with the rest coming from the state's unemployment fund and the general budget.
Despite strong opposition from business leaders, the new plan would take another $660 million out of the unemployment fund over the next two years.
The various unemployment funds now total almost $1.3 billion.
Authority to use the unemployment fund ran out on Dec. 31.
Businesses would still have to contribute to the state's unemployment fund while the employee was on leave.
Under the new plan, the state would take $660 million more out of the unemployment fund over the next two years.
It costs $1 billion a month, money that is available from the federal unemployment fund.
Additional money would come from the state's unemployment fund and the general budget.