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News / Northwest

Feds should reward solvent WA unemployment trust

The Columbian
Published: February 21, 2011, 12:00am

OLYMPIA, Wash. (AP) — Lawmakers say that Washington state should not be penalized for having a healthy fund for unemployment payments.

Senate leaders introduced and pushed forward Monday a measure requesting that the federal government give Washington employers an unemployment tax relief or a financial benefit equal to any financial help the federal government provided to states with bankrupt unemployment funds.

The measure was in response to the Obama administration’s recent proposal to give states a temporary break on their interest payments for their unemployment insurance debt to the government.

At about $2 billion, Washington state’s unemployment funds is one of the healthiest. The fund is where the state draws money to pay people claiming unemployment.

Officials say that more than 30 states have bankrupt unemployment funds and have had to borrow from the federal government to pay benefits owed to unemployed workers.

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