Senate Bill 77
Rebuilding Kansas' State Unemployment Fund
Chronic unemployment has plagued our country (especially in southeast Kansas) throughout this recession. With Kansas unemployment claims near record highs, our state unemployment fund (which had ample reserves just three years ago) is facing a crisis. Last year, our state had to borrow over $100 million from the federal government to stabilize this fund. To address this shortfall, the Kansas Senate passed a plan to start rebuilding the state's unemployment fund. Senate Bill 77 would allow the state to both repay this debt and protect the long-term viability of the state unemployment fund.
SB77 would accomplish this goal two ways. First, the bill would increase the wages on which employers pay into the unemployment fund by 10% for 3 years. SB77 would also double the surcharge rate applied to "negative balance employers." An employer is considered "negative balance" when it has received more benefits than it has contributed to the fund.
SB77 would also reinstate the one-week benefits waiting period (originally put into place in the 1930s). The waiting period insures that Kansans are not drawing unemployment benefits at the same time they are getting checks from their previous employer. These changes (in addition to discontinuing unemployment benefits for new Kansans who voluntarily left their jobs in other states) should be sufficient to secure the solvency of the Kansas unemployment fund for many years to come.
SB77 would accomplish this goal two ways. First, the bill would increase the wages on which employers pay into the unemployment fund by 10% for 3 years. SB77 would also double the surcharge rate applied to "negative balance employers." An employer is considered "negative balance" when it has received more benefits than it has contributed to the fund.
SB77 would also reinstate the one-week benefits waiting period (originally put into place in the 1930s). The waiting period insures that Kansans are not drawing unemployment benefits at the same time they are getting checks from their previous employer. These changes (in addition to discontinuing unemployment benefits for new Kansans who voluntarily left their jobs in other states) should be sufficient to secure the solvency of the Kansas unemployment fund for many years to come.
