Unemployment Insurance

The insolvency of New York’s unemployment insurance trust fund continues to impose significant additional costs on New York’s employers. The state needs to adopt a more sustainable UI tax system and avoid shifting significant additional tax burdens to stable employers. New York needs to:

• Develop a plan to make repayment of some $3.2 billion in borrowing from the federal UI system more affordable, including evaluation of bonding
  
  
• Avoid any benefit increases until trust fund solvency is addressed and achieved
  
  
• Explore new approaches such as a wage insurance component, giving employees the option to obtain additional coverage above baseline UI benefits