UI Rate Cut on Fast Track for Passage

Date: January 19, 2018

The first bill of the 2018 session projected to save business owners $115 million

State Director Suzanne Budge reports on the small-business agenda from the State Capitol for the legislative week ending January 19

H335, the first bill of the 2018 session, is fast-tracked for passage in the early days of the session. NFIB testified in support of the measure, which is projected to save Idaho businesses $115 million over the next three years.

For most employers, the change will reduce their unemployment taxes by 30 percent over three years starting in 2018. Moving at a record pace, H335 passed the House unanimously and was approved by the Senate Local Government committee this week. It is now before the full Senate for a vote, and then on to the Gov. Butch Otter’s desk where it will likely be signed quickly.

The legislation lowers the fund-size multiplier (part of the formula to determine what employers ultimately pay) from 1.5 to 1.3. The rate change maintains adequate reserves in the UI fund, which has more than $700 million and is on track to be above and beyond what the federal government recommends, starting in 2018.

The bill is retroactive to January 1, 2018. Click here to read the full text of H335.

State Budget

The Legislature’s Joint Economic Outlook and Revenue Assessment Committee (EORAC) accepted the governor’s projections for 2018 as reasonable and set the EORAC projection for General Fund revenues for 2018 at $3.6billion, and for 2019 at $3.8 billion.

These numbers represent a 5.3 percent increase in both 2018 and 2019. In a related move on January 17, the Legislature’s joint Change in Employee Compensation (CDC) committee agreed with the governor’s recommendation for 3 percent merit raises for state employees.

Previous Reports, News Releases, Editorials, Testimony

January 14 Report—Idaho Legislature Returns to Business

January 5 Testimony—NFIB Idaho Testifies on the Small-Business Economy

December 20, 2017 News Release—Poll of Small-Business Owners a Guide for 2018 Legislature

[Tile photo courtesy of the official website of the Idaho Legislature.]

Related Content: News | State | Idaho | Unemployment Insurance

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Or call us today
1-800-634-2669

© 2001 - 2018 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy