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Unemployment
A plan to repay North Carolina's unemployment debt could mean fewer benefits for laid off workers. STATUS: This bill was signed into law on Tuesday, Feb. 19.
North Carolina owes the federal government $2.5 billion, which the state borrowed during the height of the recession in order to pay unemployment claims. That debt has triggered a rise in the taxes employers pay for each employees.
Legislative leaders have drafted a bill that would combine hikes to the FUTA tax with a reduction in benefits for newly unemployed workers. There is some question whether that plan will work given recent changes to federal law made as part of the so-called "fiscal cliff" deal. Changes to state unemployment benefits could cause the federal government to stop payments to workers who have been unemployed longer than 26 weeks.
House leaders say they wish to proceed with reform efforts despite its potential impact on the long-term unemployed.
Bills and status:
Bills have been filed in both the House and the Senate to remake the state's unemployment system. The House Finance Committee passed the bill on Thursday, Jan. 31. Republicans backers say the bill expedites repayment of more than $2.5 billion to the federal government while making the system more nimble. Democrats objected, saying the measure takes too many benefits away from unemployed workers and asks too little of businesses. The measure is scheduled to be on the House Floor Monday, Feb. 4. Gov. Pat McCrory has said he will sign such a measure if it comes to his desk.
The House approved the bill remaking the state's unemployment system on Feb. 5. The Senate gave final legislative approval to the bill on Feb. 13. It is now waiting for Gov. Pat McCrory's signature or veto.
UPDATE: Gov. Pat McCrory signed this bill into law on Tuesday, Jan. 19.
Related stories:
House Bill 4 will repay $2.5 billion to the federal government by cutting unemployment benefits and raising taxes on businesses.
The state Senate on Tuesday gave key approval to a sweeping rewrite of North Carolina's unemployment system, including deep cuts to the size and duration of weekly jobless benefits.
Republicans turned back two amendments that would have allowed more people to take advantage of benefits or grant more benefits in the case of factory layoffs. It now goes the state Senate.
North Carolina lawmakers are rewriting the state's unemployment insurance law to change how benefits are paid and how the system is funded. This post compares the current rules to different options under consideration by the General Assembly.
House Democrats came up short Monday night in several efforts to soften legislation that would slash jobless benefits as part of an overhaul of the state unemployment system.
Gov. Pat McCrory says he will sign an unemployment overhaul that will cut off federal emergency benefits for some 80 thousand jobless North Carolinians.
The Republican majority of the House Finance Committee beat back efforts Thursday morning to soften legislation slashing jobless benefits as part of an overhaul of the state unemployment system.
The Republican majority of the House Finance Committee beat back efforts Thursday morning to soften legislation slashing jobless benefits as part of an overhaul of the state unemployment system.
Documents attached to this post will help readers understand the 70-page unemployment insurance reform bill.
The Chamber of Commerce and other business groups are pushing a sweeping remake of unemployment insurance laws. Democrats and members of the Urban League say lawmakers need to avoid "cutting workers off at the knees."
Gov. Pat McCrory says he'll decide next week whether to support an unemployment reform plan that would cut off federal extended benefits for tens of thousands of jobless North Carolinians.
House Finance Committee Chairman Julia Howard says lawmakers should push ahead with unemployment insurance reform, regardless of the action's impact on federal benefits for jobless workers.
The state Treasurer says repaying the federal government money borrowed for unemployment insurance would "catapult over" the state's self-imposed debt limit.
State lawmakers will consider cutting jobless benefits when they return to Raleigh this month after a legislative committee approved changes to the unemployment program on Wednesday.
Lawmakers might have to push back the effective date of an overhaul to North Carolina's unemployment program until 2014 because of changes to federal law, Republican leaders said Wednesday.
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