This summer and fall a group of employers and labor representatives will be developing a proposal to make Connecticut’s Unemployment Compensation Trust Fund more fiscally sound.
It’s very likely that their work will result in higher unemployment taxes on employers.
The Employment Security Advisory Board is charged, in part, with advising the state labor commissioner on policy matters concerning the trust fund—which, after the Great Recession that devastated the fund, boils down to how to keep it afloat.
After the recession caused the state to borrow nearly $1 billion from the federal government to shore up the trust fund, the board, which is evenly divided between employers and organized labor, decided to take a comprehensive look at the state’s unemployment system.
Throughout the summer, members will be soliciting input from experts on various proposals and methods to return the fund to solvency.
Even though that process is just beginning, it’s clear that whatever final proposal is agreed upon necessarily will include modifications to both the benefits paid to unemployment claimants and the taxes paid by employers.