In 2013, North Carolina lawmakers passed a new law that reduced both the amount and the length of unemployment benefits in order to address a $2 billion deficit in the state’s unemployment insurance trust fund. This was a result of having to borrow money from the U.S. Labor Department to pay extended benefits to jobless North Carolinians during the recession.
However, since then, the fund has achieved a significant turnaround. The federal debt has been repaid and as of December 2017, the fund has $3.17 billion in the bank, reported The News & Observer. This is the largest amount in state history and fourth highest in the nation.
While this is good news for businesses of all sizes across the state, some—such as the N.C. Justice Center—would like to see unemployment benefits increase now that the fund has stabilized. Currently, North Carolina pays a maximum of $350 in weekly benefits for a maximum of 12 weeks, which is the lowest level in the nation.
However, such proposals will receive pushback from much of the Legislature. At a February meeting of the Joint Legislative Oversight Committee on Unemployment Insurance, Sen. Andy Wells expressed concern about decreasing the amount in the unemployment trust fund and whether it would mean tax hikes on businesses. The News & Observer reported his comments: “I understand that people are being laid off, but they’re being laid off because businesses are being crushed, and that is the absolute worst time to raise taxes on business. Looking at this from a business point of view, we were ratcheting up taxes to pay off that federal debt. I would like to see us look at this as an insurance trust.”
