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Lawmakers press DEW on speed of UI trust‑fund rebuild, employer burden
Summary
Committee members questioned whether five‑year rebuild assumptions overburden employers after Stanton reported a $590M April 30 balance; staff said statutory formulas and taxable wage growth drive rate settings and pledged updated collection numbers.
During questioning about unemployment insurance tax policy, several committee members pressed DEW for details on the pace of reserve rebuilding and whether current tax settings were necessary. A legislator challenged the rebuild pace, saying it “seems like we're are gouging our private employers at a rate that's not necessary,” and asked whether the agency had factored private‑sector risk from industry closures into rate projections.
Stanton replied that tax rates and reserve targets are set using a statutorily defined multiplier (based on the three worst recessions) and the taxable wage base; she said DEW consults with the Congressional Budget Office and the U.S. Department of Labor on projections and that this year DEW expects to add about $140 million to reserves. She offered to update the committee with April/May processed collections to clarify the current position.
