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Business groups tell committee reducing unemployment maximum weeks to 20 would help solvency
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Summary
Representatives of the Ohio Chamber of Commerce and NFIB told the House Public Insurance and Pensions Committee that House Bill 376 — which would cut the maximum weeks of unemployment benefits from 26 to 20 — would help the trust fund return to solvency; members asked about shifting costs to other public programs and data supporting the fiscal estimates.
Kevin Shimp, a partner at Dickinson Wright testifying on behalf of the Ohio Chamber of Commerce, urged the committee to support House Bill 376, which would reduce the maximum duration of unemployment benefits from 26 weeks to 20 weeks. Shimp said the change — combined with targeted employer-contribution reforms — would help put Ohio's unemployment trust fund on a more sustainable path and avoid costly federal borrowing in future downturns.
"Lowering the maximum duration from 26 to 20 weeks, which still allows for five full months of benefits, will save the system approximately $165,000,000 annually," Shimp said, adding that the figure grows to roughly $1.8 billion over 10 years based on his presentation. He cited the state's 2008 borrowing of about $3.44 billion as an example of the cost of insolvency and urged complementary reforms that better align employer tax contributions with experience ratings, including proposals to increase rates for so-called 'negative-rated' employers.
Michael Wang, representing the National Federation of Independent Business (NFIB), also testified in favor of HB 376 and said current data show most claimants do not use the full 26 weeks; he said average claims last roughly 14 weeks and that modern job-matching and reemployment supports reduce the need for the current maximum. "Most claimants do not use all 26 weeks, with the average claim lasting about 14 weeks," Wang said.
Committee members pressed witnesses on fiscal implications and distributional effects. Vice Chair Teska asked about average claim length; Shimp and Wang gave slightly different average estimates (about 13 and 14 weeks, respectively). Rep. Young raised a 'fiscal trap' concern, asking whether reducing unemployment duration shifts costs onto SNAP or other public benefits; Shimp said he had no direct data about downstream shifts but noted reemployment requirements apply and reported that about 23% of claimants exhaust benefits at 26 weeks according to the figures he cited.
Shimp and other witnesses pointed to other states with shorter maximums and to sliding-scale approaches tied to state unemployment rates; they urged the committee to consider the proposal as part of a balanced package that includes employer-side reforms. The committee heard the testimony and asked follow-up questions but did not vote on HB 376 at this hearing.
