Unemployment Insurance Reform: Good for businesses, good for workers
There are few places where we will have the ability to bolster our state’s social safety net in this biennial budget. One of the only bright spots is the Unemployment Insurance (UI) system and trust fund, which supports the thousands of unemployed workers – and the businesses that rely on them – in Washington.
Under the provisions of HB 1091, Washington’s small businesses would see a $300 million benefit by halting expected rate increases. Workers would benefit from an additional $15 per child benefit when a mother or father has lost a job. And the best part is that the funding comes from a source that does not compete with funding for schools, healthcare, higher education or other critical services.
Thanks to the foresight of past legislators, our UI trust fund is the healthiest in the nation. At a time when 30 other states have depleted their funds and are relying on the federal government to bail them out, Washington’s system is a testament to smart planning and responsible governing. That’s why we can afford to draw down our fund with a tax benefit to businesses and a small bit of help for struggling families. We can support our businesses and our fellow citizens while other states propose huge new business tax increases to replenish their trust funds.
This plan is also a shot in the arm to our economy. Let’s face it, what businesses need now more than anything is business. They need consumers shopping in their stores and buying their services. It is well-established economic fact that the quickest and most effective way to funnel money back to businesses is to put it in the pockets of those who need it most – the families who’ve lost their employment.
These families struggling to buy food or clothes or school supplies take that money and head to the nearest grocery and clothing stores to buy the necessities. They, in turn, keep that store afloat.
Currently, the proposals before us are still in flux as we weigh the merits and find some balance between tax benefits for businesses and benefits for the unemployed. No matter what the outcome of this legislation, I want to make sure that you know that your state is one of the best managed. We did save for a rainy day, and economically speaking, it is still pouring. I will be putting great energy this session into ensuring that a reasonable amount of that trust fund gets used to help small businesses and working families.