Kentucky Senate passes bill for jobless fund | News | Kentucky Roofing Contractors Association

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Kentucky Senate passes bill for jobless fund

On May 28, the Kentucky Senate approved House Bill 5 aimed at building up the state's unemployment insurance trust fund, according to The Courier-Journal. It has been sent to Gov. Steve Beshear (D-Ky.) for his signature.

The bill, which passed the Senate on a 36-1 vote, increases taxes on employers and reduces benefits for unemployed workers to help shore up the unemployment insurance trust fund, which has an $800 million deficit. Kentucky is borrowing money from the federal government to pay benefits.

"Finding a solution that recognizes the needs of employers and employees while keeping the unemployment insurance system solvent is a huge accomplishment," Beshear says.

The wage base on which employers pay taxes for the fund gradually would increase from the first $8,000 to $12,000, and labor leaders agreed to a decrease in maximum benefits from 68 percent of previous wages to 62 percent. Additionally, unemployed workers would have to wait one week before claiming benefits.

Kentucky's unemployment rate in April was 10.6 percent compared with the U.S. rate of 9.9 percent.

6/2/2010