By Shelley Kofler, KERA News
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-870252.mp3
Dallas, TX –
State commissioners today took a first step in raising the tax rate businesses will have to pay to keep the unemployment insurance fund afloat. KERA's Shelley Kofler has details.
In the words of Workforce Commission Chairman Tom Pauken: "We had to choose from a series of unpleasant alternatives."
So many Texans have lost their jobs that unemployment benefits in the state have more than tripled in the past two years.
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The Workforce Commission's Ann Hatchitt says commissioners adopted a financing plan that keeps employers from being hit by an astronomical increase all at once.
Hatchitt: It will be a steadier tax increase over the next three years instead of a larger increase over one year
To smooth out the increase commissioners agreed to continue borrowing millions each month in federal interest free loans that must be repaid. The state also plans to borrow $2 billion in bonds next year.
But even with that extra cash on hand, unemployment taxes will increase in January. How much isn't clear, but companies with a history of layoffs will pay the highest rates.
Hatchitt: The entire group of employers in Texas probably will pay twice as many taxes as they did before but each employer's individual tax rate is set based on their history of laying people off.
Commissioners will adopt unemployment tax rates for businesses next month.