AUGUSTA – Gov. Angus King said Tuesday he will not sign a bill to extend unemployment benefits to people seeking less than full-time work because it would add to the cost of doing business in Maine.

The bill, LD 2218, would have taken effect in 2003, and extended benefits would have ceased in 2006.

King’s letter to legislators explaining his decision said any expansion of benefits must be evaluated in light of how much more it will cost employers to do business in Maine.

“My ongoing concern for the overall health of the Maine economy – and all of its workers – forces me to oppose the bill,” King said.

An official with the Maine Women’s Lobby, a leading supporter of the measure along with the Maine AFL-CIO and other groups, said she was “extremely disappointed” by King’s action.

“One of the things we have constantly tried to point out is that the labor market has changed” to include more part-time workers, and most of those part-time workers are women, Laura Fortman said.

“The fact is that, usually because of family considerations, they have to find part-time employment,” Fortman said.

Lawmakers sustained King’s veto of an earlier bill to extend benefits to those seeking part-time work. Hours after the veto was upheld, a version revised to address the governor’s objections was passed and sent to his desk. The governor also cited cost concerns when he vetoed the earlier bill.

The new legislation limited the part-time benefit provision to the period between June 1, 2003, and June 1, 2006. Federal funds to cover the added costs of the part-time benefit are to be available during that three-year period.

According to King, the benefit expansion would cost $13.8 million.

In his message Tuesday to House and Senate leaders, the governor expressed doubts that the “sunset” provision would forestall a financial impact on employers, who must pay taxes into the unemployment fund.

King said experience suggests that termination of the added benefits in 2006, after they have been available for three years, would be highly unlikely.

Refusing to sign the bill is “based on possibilities,” said House Speaker Michael Saxl, D-Portland. “Every penny called for in this bill is paid for” by federal funds.

While unemployment contribution rates decreased in Maine this year, they remain higher than the national average and those of four other New England states, including New Hampshire, Massachusetts, Vermont and Connecticut, King said.

The governor said only 18 states expanded benefit eligibility to those who limit their job availability to less than full time.

Because the bill arrived on King’s desk after the Legislature had adjourned in April, he was able to pocket veto it. If the current Legislature does not meet again, it will have no chance to override King’s veto.

Fortman says supporters likely will be back with similar legislation next year.

“I doubt we’re going to give up,” she said.