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Lawmakers Urge Direct Paydown of Unemployment Insurance Debt, Cite Business Strain
Summary
Senators and Assembly members at a joint Economic Development subcommittee hearing urged the Legislature to address the unemployment insurance trust fund debt and clarify frequency-of-pay litigation rules, saying the liabilities and business climate are driving firms and jobs out of New York.
Albany — Lawmakers on the New York Legislature—s Economic Development joint subcommittee pressed for immediate action on the state—s unemployment insurance trust fund debt and for statutory clarification on pay-frequency litigation, saying both issues are harming businesses and costing jobs.
Senator George Borrello, a member of the subcommittee, said the unemployment insurance debt has been "crushing for our businesses" and urged a straightforward payoff. "About 6 and a half billion dollars left, let's just pay it off," Borrello said.
The discussion focused on how the debt and recent litigation over pay-frequency rules have increased costs for employers, with speakers warning that New York is losing jobs and businesses to other states. "We are shedding jobs and businesses almost daily," Borrello said, adding that the state needs systemic change beyond a single budget.
The co-chair, Assemblymember Al Sturpi, opened the session outlining priorities including clarifying the law on frequency of pay lawsuits and addressing the unemployment insurance trust fund debt. Sturpi said the subcommittee aims "to achieve a number of wins for business this year in the budget." (Assemblymember Al Sturpi)
Senator James Sanders emphasized the human impact of budget decisions. "At the end of everything, it's a question of people," Sanders said, urging colleagues to keep residents and workers in mind when considering policy changes.
Lawmakers debated whether the executive and legislative budget proposals adequately address the UI debt. Borrello criticized the governor's approach, saying federal funds that could have reduced the liability were not used to the same extent as in other states and called some legislative proposals "a shell game." He said business groups such as the National Federation of Independent Business and the New York State Restaurant Association are "at their wits end." (Senator George Borrello)
No formal votes were taken at the hearing. The comments were part of negotiating posture as senators and assembly members prepare budget language and possible statutory clarifications in the coming weeks.
Background details raised during the hearing included references to litigation over frequency-of-pay rules and the scale of the UI trust fund shortfall. Specific statutory amendments, bill numbers, or enacted budget language were not provided at the hearing.
Lawmakers said further meetings and budget negotiations will follow as the subcommittee and the General Conference Committee work to reconcile House proposals and produce final budget language.
