Facing escalating deficits, while borrowing money from the federal government since January, Governor Jim Douglas, Speaker Shap Smith and Senate President Pro Tem Peter Shumlin today announced they have reached an agreement on reforms to shore up the unemployment insurance (UI) trust fund. The agreed upon reforms are expected bring the fund in to the black by 2015 reducing expected borrowing from the federal government and accompanying interest payments from the state s general fund and limiting the amount of time that Vermont employers will forgo a valuable federal tax credit. The compromise will also set the fund up for long-term sustainability.
Running sustained deficits in any state fund neither represents our Yankee independence nor our commitment to fiscal responsibility, said Governor Douglas. Moving ahead with this compromise is much preferable to the alternative doing nothing and importantly strengthens the fund. Setting our UI trust fund on a sustainable course is critical to our economic recovery.
Our state s unemployment insurance program is one of the best in the nation for getting Vermonters back to work, said Speaker Smith. The integrity of the fund is paramount to ensuring that those who are laid off have access to assistance during their transition back to employment. This compromise lays the groundwork for the long-term health of the fund.
This agreement is fiscally responsible and solves the problem the Vermont way: by working together to make tough decisions, said Senate President Shumlin. By sharing the sacrifice between employers and employees we will make the fund solvent helping us to create jobs for Vermonters.
Details of the agreement are contained in the attached document.
Source: Governor's office. 5.3.2010 www.labor.vermont.gov
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2010_Unemployment_Insurance_Reform_Bill.pdf40.65 KB