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