Tennessee’s legislature has passed a measure to keep the state unemployment trust fund from going broke. The measure raises taxes on employers to help replenish the fund, and extends benefits through federal stimulus dollars.
The measure allows the state to extend unemployment benefits an extra 20 weeks, up to nearly 80.
To receive the stimulus dollars, the state must bring itself into compliance with federal guidelines.
A few in the senate spoke out against those mandates, but sponsor Jim Kyle argued the measure is reasonable. Kyle says Tennessee’s system has been due for an update to stay solvent.
“We’ve gotten the benefit of the bargain for decades of having a low unemployment tax, and having a moderately low fund, that was good during the economy, but now it’s time to pay the piper. I don’t think the payers of the piper are complaining.”
Under the measure employers would have to pay taxes on the first $9 thousand of their worker’s pay, up from $7 thousand.
The measure passed the senate 29 to 3, and heads now to the governor for his signature.
WEB:
The three senators voting against the bill were Watson, Beavers and Stanley. Click here to see Monday’s votes in the House.
Federal stipulations affect elegibility, benefits, and definitions of part-time work and a base period. Additionally, where Tennessee’s unemployment trust fund was previously considered full at $600 million, the bill the senate passed Tuesday would raise that amount to $900 million.
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