Well the Nevada Economic Security Council met on Tuesday and unanimously voted to recommend to hold unemployment tax rates steady for 2010 despite Governor Gibbons' recommendation to lower unemployment tax rates for state businesses.   The actual rates will be decided at the end of the year by Economic Security Administrator, Cindy Jones.  The board also voted against two measures that would have increased unemployment tax rates for Nevada employers. 

It appears that employers in the state had mixed feelings about an unemployment tax decrease, but in the end it appears that concerns over having to pay back federal unemployment loans with interest is what had local Chambers supporting a hold steady strategy.  While the interest on federal loans has been waived through the end of 2010 as part of the Economic Stimulus Package, borrowings have been significant for many states and interest will need to be paid through unemployment tax revenues collected from employers.

Employers in South Carolina aren't as lucky.  The Board of Economic Advisors are recommending in increase in wage base and a surcharge on unemployment compensation paid by all employers.  Depletion of the fund and the resulting high interest payments due on federal loans was a key factor in the recommendations.  Board of Economic Advisors Chairman, John Rainey, stated; "It’s unfortunate that these funds have to be siphoned off of creating jobs, building plants and equipment, and helping us come out.  But the federal debt must be repaid." (see full quote here)

I can't help but wonder how different things could be if policy changes were made to support a waiver of interest on all Federal Unemployment Trust Fund Loans made during hard economic times?

Tammy Mullin