Senator Boccieri: Unemployment Compensation Fund Going Broke

Senator Boccieri: Unemployment Compensation Fund Going Broke

State Senator John Boccieri, candidate for Congress in Ohio's 16th District, expressed concern today that a crisis looms as the Unemployment Compensation (UC) Trust Fund has taken a turn for the worse along with the state's sluggish economy. With the fund running on empty, the situation has many in Columbus talking about a federal bailout.

According to the Ohio Department of Job & Family Services, the UC Trust Fund has about $529 million which is $124 million less than last year. Officials cite the slowing economy, rising unemployment, and payments to workers linked with inflationary adjustments while business payments remain constant.

"It is not the news Ohio needed while we ride into another recession," Senator Boccieri said. "Employers and workers feel the pinch every day because of rising energy costs and with so many plant closings the fund is taking a hit."

Ohio businesses pay less than the national average into the UC Trust Fund and a Columbus think tank is asking lawmakers to raise the taxable wage base from $9,000 to $12,000 while linking it to wage levels. Business representatives on the committee warned against this position and offered that reductions in payments to unemployed workers would be a more workable solution.

"It is most unfortunate that we have to wait until a crisis looms before taking action. President Bush has threatened to veto unemployment compensation extensions putting further strain on Ohio families as well as on the fund - a federal bailout of Ohio's fund may be on the horizon," Senator Boccieri said.

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