Indiana mulls $1 billion tax hike for unemployment fund

File Photo

Gov. Eric Holcomb's administration is pushing for an increase in business taxes to provide $1 billion more for Indiana's unemployment trust fund.

Posted: Jun 9, 2019 9:34 PM

INDIANAPOLIS (AP) - Gov. Eric Holcomb's administration is pushing for an increase in business taxes to provide $1 billion more for Indiana's unemployment trust fund.

The proposed 17% increase would bring premiums paid by companies to a level recommended by the federal government, The Journal Gazette reported.

But key business groups urged lawmakers to weigh the impact of raising premiums against socking money away in the fund, which is used to pay unemployment checks when the jobless rate is high.

"How much money do you take out of the economy and just have it sitting on the sidelines when that money could be invested and creating jobs?" asked Brian Burton, president and CEO of the Indiana Manufacturers Association. "It's a fine balance."

The trust fund's current balance is $830 million, which is up from last year. Revenue is coming in slower than anticipated but is balanced by the current low unemployment rates, said Josh Richardson, chief of staff at the Indiana Department of Workforce Development.

Last year, only $251 million was paid in unemployment claims, compared to $1 billion to $1.8 billion a year during the last recession. Indiana's jobless rate stayed around 3.5% all last year, but topped 10% for much of the recession years 2009-10.

Republican Rep. Dan Leonard of Huntington, the Indiana House expert on the unemployment system, said the state is on track to hit $1 billion in unemployment fund reserves by the end of next year. U.S. Department of Labor guidelines indicate the state needs $1.8 billion on hand.

The proposal from the Holcomb administration came with roughly a month left in this year's state legislative session that ended in late April. Lawmakers balked at the recommendation and the proposal will have wait until next year to be reconsidered.

Richardson said it is better to be ready than have to scramble when times are tough.

"We're not really in the business of predicting what the future economy looks like, but in business cycle terms, we want to make sure that you're prepared for whatever comes next," Richardson said. "Raising those premiums on the other side - when you are in a downturn - is sort of the worst possible time to do it. The better time would seem to be while the economy is in pretty good shape."

___

Information from: The Journal Gazette,

http://www.journalgazette.net

(Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

6/9/2019 11:07:53 AM (GMT -4:00)

Terre Haute
Few Clouds
81° wxIcon
Hi: 83° Lo: 55°
Feels Like: 82°
Robinson
Clear
78° wxIcon
Hi: 83° Lo: 53°
Feels Like: 80°
Indianapolis
Scattered Clouds
78° wxIcon
Hi: 80° Lo: 62°
Feels Like: 80°
Rockville
Few Clouds
81° wxIcon
Hi: 81° Lo: 55°
Feels Like: 82°
Casey
Broken Clouds
81° wxIcon
Hi: 80° Lo: 53°
Feels Like: 83°
Brazil
Few Clouds
81° wxIcon
Hi: 81° Lo: 56°
Feels Like: 82°
Marshall
Few Clouds
81° wxIcon
Hi: 83° Lo: 53°
Feels Like: 82°
Rain showers expected overnight
WTHI Planner
WTHI Temps
WTHI Radar

Latest Video

Image

Sunday Morning Forecast Update

Image

Saturday Evening Forecast

Image

Saturday Morning Forecast Update

Image

Barr-Reeve vs Loogootee 9-25-20 ITZ

Image

Harrison vs Vin Lin ITZ 9-25-20

Image

West Washington vs North Central ITZ 9-25-20

Image

Riverton Parke vs Cloverdale ITZ 9-25-20

Image

Linton vs North Daviess ITZ 9-25-20

Image

Indy Lutheran vs Northview ITZ 9-25-20

Image

OV vs Sullivan ITZ 9-25-20

WTHI Events

 

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Confirmed Cases: 288773

Reported Deaths: 8832
CountyConfirmedDeaths
Cook1430845203
DuPage17393560
Lake16794487
Will13917378
Kane13065326
St. Clair6574190
Winnebago5848149
Madison5666136
Champaign464520
McHenry4567118
Peoria345949
McLean326023
Rock Island297176
Kankakee273177
Unassigned2538244
Sangamon240145
Kendall199725
Tazewell174923
LaSalle170157
DeKalb156738
Macon150344
Coles145030
Williamson139045
Jackson125924
Clinton115320
Boone111323
Adams111210
Randolph93711
Effingham8653
Vermilion7454
Whiteside73820
Ogle6956
Monroe67315
Grundy6675
Henry6645
Morgan65523
Knox6483
Bureau63711
Jefferson60038
Marion5480
Macoupin5407
Christian53711
Franklin5303
Stephenson5176
Union51424
McDonough48015
Logan4611
Crawford4403
Woodford4206
Fayette4063
Cass39511
Jersey39015
Livingston3886
Shelby3854
Montgomery37113
Lee3681
Iroquois36419
Perry34715
Saline3344
Warren3302
Bond3225
Douglas3087
Wayne2785
Jo Daviess2592
Lawrence2542
Carroll2274
Greene22611
Cumberland2155
Hancock2153
Moultrie2143
Jasper2119
Washington2101
Richland2055
Fulton1740
Pulaski1741
Clark1722
White1670
Johnson1530
Clay1510
Wabash1513
Mason1451
Mercer1375
Piatt1370
Pike1271
Menard1251
De Witt1161
Edgar1138
Massac1092
Ford1045
Marshall1010
Alexander801
Scott780
Gallatin722
Hamilton681
Henderson660
Edwards630
Brown590
Calhoun590
Putnam570
Stark552
Schuyler490
Hardin390
Pope291
Out of IL30

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Confirmed Cases: 116549

Reported Deaths: 3577
CountyConfirmedDeaths
Marion21322766
Lake10566323
Elkhart6623111
St. Joseph6488109
Allen6244203
Hamilton4893109
Vanderburgh365231
Hendricks2741123
Monroe259836
Tippecanoe248313
Johnson2328124
Clark222757
Porter215447
Delaware196062
Cass19509
Vigo183527
Madison167075
LaPorte144440
Floyd137063
Warrick133039
Howard131363
Kosciusko121817
Bartholomew117057
Marshall100724
Boone98146
Dubois97919
Hancock93043
Grant92534
Noble91532
Henry80326
Wayne76114
Jackson7589
Morgan72438
Shelby67429
Daviess67228
Dearborn66428
LaGrange63811
Clinton60214
Harrison58224
Putnam57912
Gibson5225
Knox5179
Lawrence51229
Montgomery51121
White48614
DeKalb48311
Decatur45839
Miami4363
Greene42635
Fayette42213
Jasper3962
Steuben3857
Scott37711
Sullivan33712
Posey3350
Jennings31412
Franklin30925
Clay3015
Ripley2988
Orange28824
Whitley2766
Carroll27513
Wabash2688
Adams2663
Washington2661
Starke2647
Wells2634
Jefferson2483
Spencer2463
Fulton2412
Huntington2363
Tipton22722
Perry21913
Randolph2167
Jay1850
Newton17311
Owen1691
Martin1660
Rush1554
Pike1511
Vermillion1300
Fountain1272
Blackford1193
Pulaski1131
Crawford1070
Brown1043
Parke1002
Benton870
Union790
Ohio787
Switzerland690
Warren401
Unassigned0226