The governor is set to sign two measures aimed at providing unemployment-insurance tax relief for employers. The bills, which received nearly unanimous support in both houses of the Legislature, were hailed by lawmakers as a victory for employers, workers and those looking for work.
“Unemployment insurance taxes went up by more than 360 million dollars in 2010 and they were projected to rise by even more than that this year alone,” said Sen. Michael Baumgartner, R-Spokane. “These bills were needed to provide employers with the certainty and stability they require to create jobs. By reducing the tax burden on employers and growing the economy, we will not only create jobs and help struggling Spokane families, we will also reduce the caseloads for social services and increase revenue for the state budget.
“That’s not just good policy; that’s smarter government.”
Last week the Senate passed Senate Bill 5135. The measure, which was co-sponsored by Baumgartner, will protect employers from the projected $300 million in unemployment-insurance tax increases planned for this year and extend standard federally-funded unemployment benefits for 70,000 Washington families.
The House of Representatives passed SB 5135 unanimously on Wednesday. The same day the House also unanimously passed House Bill 1091, which would:
• permanently restructure the UI system;
• expand some training benefits;
• provide longer-term tax relief for employers, giving them more time to recover from the impacts of our economy;
• expand access to benefits while workers are retraining;
• extend standard federally-funded unemployment benefits for 70,000 Washington families; and
• provide unemployed workers with a $25 a week benefit increase for claims filed between March and November 2011.
HB 1091 will be paid for with federal funds being offered to states that modernize their UI systems.
“These bipartisan bills – based on a Republican idea and requested by our Democratic governor –will not only help employers, but tens of thousands of Washingtonians who would otherwise lose their federal UI benefits,” said Baumgartner.
“The job-training provision will also allow people who have exhausted their UI benefits to come away from this tough time in their lives with some new skills that will help them win the jobs that will be available when the economy fully recovers.”
Baumgartner added, “This is a great example of what the Legislature can do for the people of this state when it puts partisanship aside, and focuses on doing what is best for Washingtonians.”