Chamber proposes jobless fund solutions
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By BRUCE EDWARDS RUTLAND HERALD STAFF WRITER - Published: November 22, 2009
The state's leading business organization has set its sights on the next legislative session ,with the solvency of the state's unemployment trust fund at the top of its list.
The Vermont Chamber of Commerce is calling for a balanced solution to the unemployment trust fund, which is anticipated to run out of money by the end of the year.
"We have put specific proposals on the table last year and we will again to increase the taxable wage base that Vermont employers pay," said Vermont Chamber of Commerce President Betsy Bishop. "However, we feel it should be a shared sacrifice on both sides of the equation, being employers and employees."
While businesses would pay more into the unemployment trust fund, the Chamber wants to see a reduction in benefits from the current maximum of $425 to $409 a week. That's slightly better than the Douglas administration proposal to reduce maximum benefits to $400 a week.
"We know how hard that is for employees but the increased taxes on businesses at this time also create a hardship," Bishop said. "This is not an easy issue to solve."
The administration's proposal calls for an $84 million increase in employer contributions to the unemployment trust fund over the next four years. Over that same period, the unemployed would shoulder a cut in payments of more than $90 million.
The Legislature this year froze the maximum unemployment benefit at $425 a week and increased the taxable wage base paid by employers by 25 percent.
Bishop said the Chamber also wants the Legislature to consider barring workers from collecting unemployment benefits who have been fired for misconduct, including workers discharged for excessive tardiness and absences.
The Chamber will also press the Legislature when it reconvenes in January to at a minimum fund the travel and tourism promotion budget at its current level.
Bishop said because of the strength of the travel and tourism sector revenue from the rooms and meals tax is one area that continues to perform well and cutting the marketing budget would be counterproductive.
"We want to make sure that that sector continues to perform and that we continue to get travelers out of state here to Vermont, filling up our inns and our restaurants, our bed and breakfasts, our hotels, going to our attractions," she said.
The Chamber's third priority is restoring funding for the worker training program which is geared to existing employees.
Bishop said funding for the Vermont Training Program was slashed from $2.8 million to $1.8 million.
She said the program helps defray part of the cost to train existing workers as employers develop new products and services.
She said the program has benefited the state's high-tech industries, other manufacturers and the health care sector.
"That is really money that helps retrain workers so they stay at a skill level that is what the employer needs," she said.
With the state facing a projected $82 million deficit, Bishop also said the Chamber will be on guard for any attempt by the Legislature to shift more costs or tax burden onto its business members.
bruce.edwards@rutlandherald.com
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