| November 2011 | Past Issues | Advertise | Affiliates Search | PCOC.org |
UI FUND IN TROUBLE – EMPLOYERS WATCH OUT!
California's Unemployment Insurance fund went into the red nearly two years ago. It had reserves of $6.5 billion a decade ago. Our state has well over two million unemployed workers and half of them collect unemployment insurance benefits. The Employment Development Department paid more than $20 billion in benefits last year. Clearly, UI benefit payments are lifelines for millions of Californians; not only the 26 weeks of state benefits but also the up to 73 weeks of extended benefits that are financed by the federal government. The UI fund is funded from an employer-paid payroll tax but it's a revenue system unadjusted for years after benefits were nearly doubled 10 years ago when the fund had that $6.5 billion cushion. Sooner or later the state will have to rebuild the fund which is where employers have to watch out! A new report by Legislative budget analysts points out that while California's unemployment benefits are fairly low in comparison with other states, California's criteria for receiving benefits are relatively easy and the state's recipients tend to stay on the rolls longer. Depending who is in political control at the Capitol, either employers will suffer when payroll taxes are increased or eligibility requirements will be tightened...or some combination of both. Governor Schwarzenegger vetoed one bill to increase employer taxes...it is uncertain whether Governor Brown shares the same sentiments.
IN MEMORIAM John D. Morgenroth, PCOC Past President 1965, April 12, 1927 – October 15, 2011 Chuck Holmes passed away on October 15, 2011 |
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