Last week MML testified in opposition to SB 3 / HB 188, a bill that alters certain aspects of the State's unemployment insurance system. The most impactful provision for municipal governments is the increase in weekly benefit amount to successful claimants. Municipal governments are typically "reimbursing employers" meaning that they reimburse the unemployment insurance trust fund when a former employee makes a successful claim. This means that municipal government expenditures are tied to the amount a claimant receives, dollar-for-dollar. This is different than private sector employers, which regularly pay into the Fund based on the taxable wage base.
While the League recognizes that the unemployment insurance weekly benefit amount has not been updated in many years, the provisions of the bill would raise the cost to municipal governments to a level that would pose a significant burden.


