Associated Press
Gov. Daniels to sign Indiana jobless fund fix
By DEANNA MARTIN , 04.30.09, 06:09 PM EDT
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Gov. Mitch Daniels said Thursday he plans to sign into law a proposal to fix Indiana's bankrupt unemployment fund, despite calls from business leaders for him to veto the bill.
The state's unemployment insurance fund currently pays out hundreds of millions of dollars a year more in benefits than it collects in employer taxes. The plan approved by state lawmakers Wednesday would increase taxes on employers but would not cut benefit payments.
he Indiana Chamber of Commerce and other business groups say the increased taxes would hurt employers and could cost jobs. They said businesses shouldn't have to bear the brunt of the fix, and wanted lawmakers to cut benefits or tighten eligibility rules.
Daniels said he had hoped lawmakers would make changes to Indiana's unemployment benefits, but that he planned to sign the "imperfect" bill into law.
"It doesn't fix the problem, but it's some progress," Daniels told reporters in his office Thursday.
Ed Roberts, a lobbyist for the Indiana Manufacturers Association, is asking companies around the state to ask the governor to change his mind and veto the bill. Roberts said the tax increase will hurt businesses and could lead to more out-of-work residents. Some companies with a history of laying off workers will have to pay $577 more per employee each year than they are paying now.
"When you start tacking on a $600 increase on some folks, that gets to be devastating," Roberts said. "The governor needs to know that."
The bill phases in higher tax rates for employers while keeping jobless benefits at the current rate of a maximum $390 per week.