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State lawmakers to take on unemployment insurance

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Businesses with a history of laying off employees would pay more in unemployment insurance costs, and workers in industries where layoffs occur regularly would receive lower benefits under a bill Indiana lawmakers are preparing to take up.

Rep. Dan Leonard, R-Huntington, the author of House Bill 1450, said the measure aimed at fixing the state's insolvent unemployment system is fair because it costs more for companies that lay off employees the most often and includes a formula to ensure that people who earn the same salary receive the same unemployment benefits.

"This makes things a little fairer," he said.

Leonard said the bill would not change unemployment benefits the typical out-of-work person receives.

The bill tries to address three problems with the state's unemployment insurance system: a $2 billion debt to the federal government, interest on that debt and fixing the system so it is fiscally sound in the future. The first committee hearing on the bill is scheduled for Tuesday.

The Legislature has been working on fixing the unemployment insurance system since voting in 2009 to raise employers' premiums. That was supposed to happen last year, but lawmakers put off the increase for a year because of the recession. Those changes go into effect this year.

That fix, however, didn't specify who would pay back the $60 million to $70 million a year interest on the debt. Lawmakers say by law that federal regulations don't allow the interest to be paid off directly through the unemployment insurance fund.

The bill being considered by the House would lengthen the amount of time it would take to repay the debt, reducing the cost to employers, but add a surcharge to those companies to pay off the interest. Lawmakers say most businesses will pay about the same each year as they would have under the bill passed in 2009. Some businesses that have a history of laying off employees will see a bigger increase.

Under the plan, Indiana's unemployment system should be solvent by 2020.

Kevin Brinegar, president of the Indiana Chamber of Commerce, said although he hopes to see some minor changes in the bill, he called the legislation was good overall considering the situation, calling it a "lose-lose for everybody because of the deficit we have."

"We think this will add stability to the system and get us through this difficult period," he said.

Leonard said the bill would soften the blow on employers compared to the bill passed in 2009, saying he hopes it might lead to more people being hired.

The bill also would make changes in how much in weekly unemployment insurance some people would receive. Currently, two people paid $30,000 a year can receive starkly different unemployment benefits — as much as $190 a week — depending on how many weeks they worked. The bill would give the same benefit to people who earn the same amount annually.

Indiana State AFL-CIO president Nancy Guyott called the measure disappointing, saying she believes the bill would affect most hourly workers who become unemployed.

"Most hourly workers have fluctuations in the number of hours that they work over time and anybody in that situation would have reduced benefits," she said.

Leonard said the bill also would eliminate unemployment benefits for people who work at plants where there are regularly scheduled shutdowns for reasons such as retooling.

Senate Tax Chairman Brandt Hershman, R-Monticello, said the bill strikes a responsible balance between impact on employers and employees.

"It's a very difficult challenge to address, particularly in this economy," he said. "It's a difficult problem to solve."

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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