Indiana Gov. Mitch Daniels said 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 last night would increase taxes on employers but would not cut benefit payments.
The Indiana Chamber of Commerce and other business groups say the increased taxes would hurt employers and could cost jobs. But Daniels said today that, while the bill is imperfect, he believed it would make progress toward fixing the fund.