November 9, 2020 7:35pm
Funding announced to help stabilize Kentucky’s Unemployment Insurance Trust Fund
Following aggressive advocacy by GLI and business organizations across the state, Kentucky Governor Andy Beshear announced efforts to help stabilize the Commonwealth’s ailing Unemployment Insurance (UI) Trust Fund. Stabilizing the fund will help alleviate anticipated UI tax increases for employers in 2021.
Last week, Governor Beshear announced that the state would allocate between $200 and $335 million of Kentucky’s share of CARES Act funds to help replenish the UI Trust Fund. As a result of the economic downturn brought on by the COVID-19 pandemic, Kentucky has had to request a federal loan to continue paying unemployment benefits to Kentuckians impacted by the pandemic. Because the UI Trust Fund has not only been depleted but has also gone into debt, the Kentucky employers likely face tax increases in 2021 to repay the federal loan and restore the fund to good health. GLI has worked with other business organizations throughout the state – as well as legislative leaders – to urge Governor Beshear to dedicate some of Kentucky’s CARES Act funds to the UI Trust Fund, which would help alleviate the burden on employers and prevent further damage to our regional economy.
In response to the Governor’s announcement, GLI released the following statement:
Greater Louisville Inc. applauds Governor Beshear for allocating portions of Kentucky’s CARES Act funds to help stabilize the Unemployment Insurance Trust Fund. Protecting Greater Louisville employers from future unemployment insurance tax increases is a major priority for GLI, which is why we partnered with business organizations from across the state to advocate for the actions that the Governor announced today.
GLI appreciates Governor Beshear’s commitment to the welfare of our economy and our regional business community. We look forward to continuing to work with the administration and legislative leadership in the General Assembly to further stabilize the Unemployment Insurance Trust Fund and ensure the success of Kentucky’s economic recovery.