February 9, 2011

Senate tries again and passes unemployment insurance reform 

Senate Bill 5135, a bipartisan measure requested by Gov. Christine Gregoire and co-sponsored by Sen. Janéa Holmquist Newbry, passed the Senate by a vote of 46 to 1.

Last week, the majority party moved for a sudden adjournment when it became clear that Republican senators, with support from six Democrats, would prevail in including federally-funded workers’ benefits that would help nearly 70,000 Washington families.

Unemployment-insurance (UI) taxes represent one of the greatest barriers to job creation and retention. While SB 5135 would provide some relief in 2011, Holmquist Newbry stressed that it is only a temporary solution.

“This bill will help reduce employers’ uncertainty and help them maintain and create the jobs our economy so desperately needs; however, there is still much work to be done,” Holmquist Newbry said. “While this bill only covers 2011, I look forward to working with the governor and my colleagues on both sides of the aisle to reach a permanent social-tax restructuring solution that will bring significant relief to employers and those desperately looking for work in our state.”

Holmquist Newbry’s proposal from last year, Senate Bill 6587, would have smoothed out the significant tax increases in 2010, 2011 and 2012, saving employers a significant amount of money over that period. Unfortunately, Senate Democrats refused to move the bill last session.

“My number-one priority continues to be creating and preserving jobs, so I am pleased that the governor used my UI ‘smoothing’ bill from last session to create a proposal for 2011.”

SB 5135 now goes to the House. It must pass the Legislature and go into effect by Feb. 8 to be reflected in 2011 rates.