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Governor Rell Urges Swift
Change of Federal Labor Laws To Extend Benefits for Unemployed, Provide
Relief for Employers
FOR IMMEDIATE RELEASE
October 31, 2009
CONTACT: Donna Tommelleo,
860-884-8472
donna.tommelleo@ct.gov
To
protect and extend jobless benefits for thousands of
Connecticut residents
and provide financial relief to employers, Governor M. Jodi Rell is
urging the state’s Congressional delegation to push for modifications in
the federal unemployment laws and the federal stimulus act, making it
easier for states to maintain their unemployment funds.
“The
clock is ticking on critical federal assistance that has allowed the
state to provide extended benefits to those who have lost their jobs in
this down economy,” Governor Rell said. “I am asking Congress to move
quickly and extend deadlines on federal aid to states, including a
provision that temporarily spares employers from paying a higher federal
unemployment tax. That is the worst scenario possible for businesses in
this climate and could force employers to shed more jobs to pay the
additional tax.”
Connecticut ,
likes most states, is borrowing interest-free loans from the federal
government to replenish its depleted Unemployment Trust Fund. In a
letter written earlier this month to the delegation, Governor urged
Congress to push for the following:
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Stimulus funds to
replenish the state’s Unemployment Trust Fund
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Full federal funding of
extended benefits for an additional year to December 31, 2010
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Extend by one year
interest-free federal loans to states until December 31, 2011
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Delay by one year (until
2012) mandatory tax increases in the Federal Unemployment Tax Act (FUTA)
that all employers must pay to support the unemployment insurance
program. Under federal law, tax increases are required when a state
has outstanding Trust Fund loans for two years.
“By
extending full federal funding of benefits to those who have lost their
jobs and interest-free loans to states,
Connecticut employers will
save an estimated $175 million,” Governor Rell said. “The last thing
Connecticut employers need now is higher taxes and increased costs of
doing business.”
The
Governor thanked the delegation for their actions taken earlier this
year, noting that as part of the American Recovery and Reinvestment Act
of 2009 (ARRA), the federal extension funds and the interest-free
advances to the state's trust fund have been instrumental in helping
Connecticut's workforce and the state’s fiscal health.
“I
encourage you and your colleagues to direct stimulus funding to state
government so that we may replenish our unemployment compensation funds
and obviate the need altogether to impose additional financial burdens
on our already beleaguered employers,” the Governor wrote.
Media contact: Nancy Steffens (860) 263-6535
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