Replenishing unemployment money | Arkansas Blog

Thursday, April 28, 2011

Replenishing unemployment money

Posted By on Thu, Apr 28, 2011 at 6:35 AM

Most states will raise taxes on businesses to replenish unemployment benefit trust funds, a new survey shows.

Worth noting:

Unemployment taxes remain low by historical standards: the survey, by the National Association of State Workforce Agencies, found that states have effectively cut the unemployment tax rate on businesses by 64 percent since the unemployment program began collecting taxes from employers in 1938.

Arkansas business and labor couldn't reach agreement on a path to repay the fund here. Labor opposed benefit cuts. Legislation was adopted to allow for a bond issue to repay money owed the federal government, with a higher tax used to pay off the bonds. Separate legislation backed by the chamber of commerce has already reduced unemployment benefits in several ways.

The Arkansas State Chamber of Commerce will hold a meeting on repaying the debt May 4. A note from director Randy Zook said the debt in Arkansas is nearing $360 million. He said a bond issue, which would require an election, is one option, but not the only option for dealing with the debt. He didn't elaborate on other strategies.

NOTE FROM RANDY ZOOK TO CHAMBER BOARD MEMBERS

We need your help in deciding the best course of action regarding the Unemployment Insurance Trust Fund debt , which is now just shy of $360 million. Arkansas employers are responsible for repayment of this debt, known properly as Title XII advances from the U.S. Department of Labor. This affects ALL AR employers who pay Unemployment Insurance taxes.

The just-concluded General Assembly passed Act 1125, which allows for special revenue bonds to be issued to repay the balance. That is one option. There are others, and we need your advice and involvement in this process to ensure we are choosing the best possible option.

Please plan to join us on Wednesday, May 4, at 11:30 for a series of working lunch meetings to discuss this issue in detail. It will be very helpful, too, if you can take time before the meeting to review your company’s UI costs so you can have that understanding as you weigh the possible effects on your business. We should conclude the meeting no later than 1:15.

Tags: , ,

From the ArkTimes store

Favorite

Comments

Subscribe to this thread:

Add a comment

More by Max Brantley

Readers also liked…

  • Civil War over in Fort Smith; lawyer strikes his Rebel mascot battle tent

    KSFM reports that Joey McCutchen, the lawyer who's been trying to restart the Civil War in Fort Smith over the School Board's decision to drop the Rebel mascot and related trappingsfor Southside High School, is dropping his School Board takeover campaign.
    • May 27, 2016
  • Medical marijuana backers: Health Department opposition 'disingenuous' and 'cruel'

    Arkansans for Compassionate Care, the group behind the first medical marijuana initiative to qualify for the ballot, has responded sharply to yesterday's statement by the Arkansas Health Department that it opposes legal medical use of marijuana.
    • Jul 13, 2016
  • Satanic Temple: Make Rapert pay for Ten Commandments monument

    A petition drive has begun to encourage a demand that Sen. Jason Rapert pay for the legal fees in defending his Ten Commandments monument proposed for the state Capitol grounds. It's more work by the Satanic Temple, which has fought church-state entanglement around the country.
    • Aug 28, 2016

Most Shared

Most Viewed

Most Recent Comments

 

© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation