Unemployment System Updates
Some general news regarding the state of the unemployment system:
The Senate Finance Committee met on Thursday, April 14, to address several financing
issues impacting the federal-state unemployment system. Among the issues noted in
the preliminary agenda for the hearing are:
– state trust fund solvency
– indexed taxable wage bases
– alternative base periods for benefit determination purposes
– work sharing
– UI experience rating issues
– expanded eligibility issues contained in the previously passed ARRA
Concern is mounting as the level of federal borrowing by states with insolvent trust
funds increased to over $38 billion this week. Recent projections by the US Department
of Labor predict that states will borrow over $90 billion due to this recession.
The California EDD reported that in February that daily benefit payments were over
$100 million a day during the month of February, 2010. The state has now borrowed
over $8 billion from the federal government to continue paying benefits and is projected
to borrow in excess of $27 billion during this recession.
Amidst growing pressure to reorganize the South Carolina Employment Security Commission,
legislation was recently passed creating a new Executive Director position that will
now head the agency and be appointed to serve at the discretion of the Governor. In
addition, several provisions were included to make the agency more efficient and accountable
in the future. Legislation is also under consideration that would drastically change
the tax system so that employers with higher experience in layoffs would pay significantly
more tax than at present.
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