April 9, 2012
Mismanagement and inaction creates $3 billion debt for employers
Dear First Name,
To say North Carolina is facing an unemployment insurance debt crisis is an understatement. According to the recent state auditor’s report, the Employment Security Commission has spent billions of dollars more in unemployment benefits than was in the UI Trust Fund, leaving North Carolina employers responsible for a $3 billion debt. The responsibility to pay off this debt falls squarely on employers, as they are the only ones who pay taxes into the UI Trust Fund. Additionally, the broken UI system has leaked $556 million in improper jobless benefits payouts between 2008 and 2011. A recent editorial characterizes the problem by saying, “The division’s response sounded like bureaucratic excuse-making… The bottom line here is that the state’s handling of jobless benefits has been an unmitigated disaster for the past decade, at least.” We could not agree more.
The North Carolina Chamber realizes that we must reform the system to restore accountability and integrity and ensure not only benefits in the future, but also effective retraining and reemployment. We have been working with a coalition of businesses and allied organizations to shape comprehensive, long-term solutions that address the solvency, integrity and affordability of the UI system.
We will continue to keep you updated on this important issue, especially when there is the opportunity to weigh in and make a difference.
North Carolina Chamber
You are receiving this email because you indicated that you wanted to hear from the North Carolina Chamber about specific issues, or because you are a governmental affairs professional or top executive at a Chamber member company. Thank you for your interest in business issues that are critical to our economy and will help shape North Carolina’s future.