Legislation authored by Representative Peter Welch (D-VT) to support states’ Unemployment Insurance (UI) trust funds gained traction this week as the Obama administration signaled its support for the plan.
HR 650, which Welch first introduced in the House last January, would extend for two years an American Recovery and Reinvestment Act provision allowing states to delay paying interest on federal loans to cover shortfalls in their UI trust funds. If signed into law, the legislation would save Vermont $8.4 million in interest payments, according to state officials.
Obama is expected to include the provision in the budget he submits to Congress on Monday.
‘This legislation provides essential breathing room for Vermont and other states to weather the fiscal crunch created by the recession,’ Welch said. ‘The federal government should partner with the states to ensure that fragile signs of economic recovery are enhanced, not diminished. This legislation does just that, by helping Vermont and other states balance their budgets when times are tough.’
Welch first unveiled his legislation at a Montpelier press conference in January 2010 alongside state, business and labor leaders. The Vermont Department of Labor on Friday said the plan would save $3.6 million in 2011 and $4.8 million in 2012.
Vermont Secretary of Administration Jeb Spaulding said, ‘Given the pressing need to close a $176 million shortfall in the state’s budget next year, this temporary federal assistance would provide much-needed support when Vermont needs it most.’
Passed in February 2009, the Recovery Act delayed interest accrual for state UI trust loans through Dec. 31, 2010. Welch’s bill extends that provision through Dec. 31 2012.
Source: Welch's office. 2.11.2010
Welch plan on UI Trust Fund would save Vermont $8.4 million
Submitted by tim
on