HB 4 (2R) - Unemployment Insurance Fund Solvency & Program Changes

Reformed NC’s unemployment insurance program to facilitate repayment of more than $2.5 billion borrowed from federal government to cover benefits. Reform reduced duration and maximum benefits for UI benefits (among other alterations. Bill also slightly increased UI tax on employers, but kept rate lower than would have been under original repayment plan. Reform will save the state millions in interest payments on the borrowed money, and has noticeably reduced unemployment. Civitas believes the conservative position is to save taxpayers millions through the more rapid repayment of debt and to reduce the incentives for people to remain unemployed. Less interference in the labor market encourages job growth.