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February 12, 2011 in City
Unemployment insurance changes signed into law
OLYMPIA – Changes to the state’s unemployment insurance system that will stop tax increases for businesses and temporarily increase benefits for jobless workers were signed Friday as the first completed legislation of this session.
With all sides applauding each other for bipartisan and bicameral cooperation, Gov. Chris Gregoire signed one bill that will stop a scheduled tax rate increase that would have cost businesses an estimated $300 million this year. That bill got its final approval in the House of Representatives on Wednesday, in time to notify businesses of the lower rates that affect payments they will make in April.
Another bill passed the Senate on Friday morning that permanently readjusts rates and temporarily provides an extra $25 a week in unemployment benefits to those out of work. It also increases training programs available for unemployed workers to help move them into jobs that have more likelihood of continuing in a changing economy.
“This is something we really need to do,” Sen. Janea Holmquist Newbry, R-Moses Lake, said shortly before the Senate voted 41-4 to approve the bill that previously passed the House 98-0.
Neither the rate adjustments nor the increase in benefits affect the state’s budget crisis, said Sen. Jeanne Kohl-Wells, D-Seattle. That’s because unemployment benefits are paid out of a trust fund that is separate from the state’s general operating fund budget.
The employers’ tax rate adjustment is really a smoothing of the rate that state law was forcing up even though the unemployment system is well-funded, Holmquist Newbry said.
The unemployment insurance trust fund is the healthiest in the United States, Gregoire said after signing the two bills. It currently has some $15 billion in its accounts, and will have about $14.3 billion even with rate increases canceled and payments for higher benefits, she said.
As leaders of both parties from both chambers crowded into the governor’s conference room for the ceremonial bill signing, Gregoire joked that such good-natured gatherings are “everyday occurrences.”
“We all worked together,” she said later. “I’m not going to tell you it was always friendly and going great guns.”
Legislative leaders said the cooperation could continue next week to pass a supplemental budget that will help cut the state’s projected deficit of about $600 million through the end of June.
“I hope so,” said Senate Majority Leader Lisa Brown, D-Spokane, adding that the two chambers are close to agreeing on a supplemental budget that will continue some of the state’s key social service programs, although at reduced levels.
Supermajority for taxes unconstitutional, judge rules 
DickAdams on February 12 at 7:34 a.m.
Lisa Brown: Tell the folks that are gold bricks to find a job. Look at the want ads and quit your reckless spending.
berrybestfarm on February 12 at 9:14 a.m.
The state unemployment trust fund is created from money paid into the system by employers and employees. It is not part of the state budget which is why these bills passed so easily with nearly unanimous support—wouldn’t have happened if it increased state spending. In Washington there are still over 4 unemployed people for each job vacancy. Only 1 in 4 are going to be hired. What are the other 3 supposed to do while jobs are being created?
rkellie on February 12 at 10:15 a.m.
berrybestfarm - could have said it better myself. Read yesterday that there was a job fair in Olympia yesterday and 400 people showed up for 50 jobs!
DickAdams - you need to get real! Do you really think that the unemployment rate skyrocketted to 9-10% because suddenly percentages of people got lazy???? Come on and get a grip on reality!
rkellie on February 12 at 10:16 a.m.
berrybestfarm - meant “COULDN’T” not “could” - sorry!!!!! Well said in your post!
509ifyourlucky on February 12 at 10:40 a.m.
The state unemployment trust fund is created from money paid into the system by employees paycheck deductions which employers have to match those deductions.
DickAdams on February 12 at 3:51 p.m.
r k: Were did I say it caused the massive unemployment? From what I know as fact, many of the unemployed, rather than look for a job, collect their unemployment benefits. Why
try and read something into a comment that was not said? You may want to take off your blindfold.
Orphan on February 12 at 3:55 p.m.
509if youarelucky/berrybestfarm you are confusing Social Security with FUTA. Please get your facts straight, makes you look bad on the rest of your posts and makes me question every thing you write.
Employess do not pay unemployment taxes the employer pays all of it.
misjustice on February 12 at 7:10 p.m.
Orphan, you are correct; in Washington state only employers pay into the UI pool.
berrybestfarm on February 13 at 7:08 a.m.
My bad. I only pay into unemployment when I am self employed which is not technically an employee and it is optional. Thank you for pointing out this correction. I always appreciate folks helping me keep it factual.