Under the Dome: UITF Partial Replenishment Secured
Colorado-Nebraska South Platte Water Dispute gets National Attention
March 26, 2022
$600M Replenishment of the Unemployment Insurance Trust Fund Secured
The state budget proposal was finalized this week with the release of the March Economic Forecast. The Joint Budget Committee and legislative leaders will offer $600 Million in funds from the federal ARPA dollars to replenish a portion of the depleted unemployment insurance trust fund. As noted in the final report on the Economic Recovery & Relief Cash Fund Task Force, an infusion of $600 million to the UITF will lower UI premium tax rates for 4 out of the next 5 years. Based on different growth forecasts, there are scenarios where the total benefit to employers could exceed $600 million by 2027. The Colorado Department of Labor and Employment’s hypothetical scenario of a 10-employee firm showed that, with a $600 million infusion to the UITF, the firm would save a total of $1,896 from 2022-2026, assuming all 10 employees make at least $30,600 annually or a payroll of at least $306,000. NCLA is pleased the $600 M pledge will be a reality, but we note the UITF fund balance peaked at $1.2 billion in March of 2020, and the subsequent depletion of the fund and federal loans due to pandemic unemployment demand left the UITF in $2 Billion hole. Replenishment of the UITF has been a high priority for the NCLA and we will continue our pursuit of additional relief in the coming year.