Krusin’ for an Unemployment Solution
Any solution to fix Indiana’s unemployment trust fund deficit won’t be pretty. That’s according to Republican State Senator Dennis Kruse, who’s chairing the committee that’s trying to solve the problem.
Kruse has been holding hearings this week on the fund which is $470 million in the hole and running deficits to the tune of $20 million – $30 million per week. He says any solution would have to achieve three goals, break even, payback the federal government and build up savings in the long run. Kruse says the state can accomplish that by cutting back some benefits and having some employers pay more.
In the area of benefit cuts, Kruse suggested the state eliminate benefits for workers who are temporarily laid off due to plant closings because they are going back to work and they still get vacation pay and retirement benefits. In addition he also discussed lowering the top benefits from $390 per week to $340 per week or gradually decreasing benefits over time to encourage people to get back to work.
In the area having employers pay more, Kruse said that employers who use the system more than they pay in would likely have to pay more to the unemployment insurance fund, while those who don’t layoff employees would pay less.
Another hearing is scheduled today over in the Statehouse.
