Wednesday, February 17, 2010
Chamber Opposes UI Bill, Supports Payment Plans
The Maryland Chamber of Commerce continues to oppose the Administration’s unemployment insurance bill. However, we do strongly support the proposed payment plans and the provision to reduce the interest rate on late payments.
“We recognize the Administration was attempting to help employers throughout the state deal with required higher unemployment insurance premiums,” said Kathleen T. Snyder, President/CEO of the Maryland Chamber of Commerce. “However, this bill does not ensure the long-term health of the unemployment insurance trust fund which employers alone pay into.”
The bill (SB 107/HB 91) would permanently expand eligibility and benefits in order to make the state eligible for $126.8 million in federal stimulus funds. The bill would also authorize a one-year deferral of a small portion of the UI tax increase that became effective this year, reduce the interest rate on late payments and establish payment plans to allow employers to spread their payments over a longer time frame.
While we support the payment plans and reduced interest rate on late payments, we oppose other elements of the legislation. The Chamber’s priority is ensuring the long-term health and stability of the UI trust fund. While deferring a portion of the UI tax increase may sound appealing, it would weaken the UI system and ensure that Maryland employers pay higher rates for a longer period of time.
The Maryland Chamber of Commerce and the Maryland Retailers Association worked with lawmakers and representatives of the Administration in an attempt to improve the bill. We were unable to come up with an agreement that we believe would ensure the health and stability of the UI trust fund. The Maryland Chamber applauds the efforts of many in the Administration and the General Assembly for attempting to address this important issue.
“We urge the General Assembly to support immediate passage of the payment plan and the reduced interest rate proposals,” Snyder said. “We ask that lawmakers refer the other elements of the Administration’s plan and our proposed offsets to the Unemployment Insurance Oversight Committee for further consideration after the session.”
