(KNSI) — The Minnesota Chamber of Commerce is calling for a bicameral solution to the state’s unemployment insurance deficit. Layoffs spurred by the government’s reaction to the COVID-19 pandemic quickly pushed the trust fund into the red in 2020. Minnesota is one of the few states that has not addressed the issue yet. In the meantime, it is paying $500,000 per day to the federal government.
Normally deficits are plugged by increasing payroll taxes, which are then borne by companies and their employees. Chamber President Doug Loon says that isn’t fair this time around because the government caused the problem. He says many others feel the same way.
“And the governor agrees. So the governor put forth a plan to fully refund it and get back to solvency using some of those federal dollars coming in we feel should be used for that purpose. He wanted to use basically some of the surplus dollars from the state budget,” says Loon.
Bills have passed both the Minnesota House of Representatives and the state Senate, but reconciliation is still needed. Loon says the issue has to be solved by the end of the week.
He warns, “To get back to solvency, the state government said we’re going to mail out bills, and they did it back in the middle of March. And those bills are now due at the end of this week…April 30th.”
Governor Tim Walz highlighted Jules’ Bistro owner Donella Westphal at the State of the State address Sunday when discussing the topic. The restaurant is located in downtown Saint Cloud.
___
Copyright 2022 Leighton Enterprises, Inc. All rights reserved. This material may not be broadcast, published, redistributed, or rewritten, in any way without consent.
FOLLOW US FOR INSTANT UPDATES!
FOLLOW US FOR INSTANT UPDATES!