Today the Governor signed SB-15: Unemployment Insurance Law Changes, a comprehensive agency bill for the Division of Employment Security. In addition to debt repayment, the Division is known for reforming agency protocol to institute more efficient and customer-friendly service.
SB-15 suspends a 20% surcharge for the calendar year 2016 if the Unemployment Insurance fund is at an agency standard $1 billion by March 1, 2016. Hitting this expected target will generate over $240 million in savings to employers and employees in 2016. The current balance of the UI Trust Fund sits at $748,750,000.
Not only will this law deliver massive savings for employers and their employees, but it also shores up the reserve fund to $1 billion. This reserve will provide a source to fund interest payments on necessary federal advances so the State does not have to dip into the General Fund. Reforming the Unemployment Insurance Law allows us to both prepare for tough times and suspend a burdensome surcharge on businesses.