Why would the SUI tax have been needing such a large increase?
From Clarksville LC
Gov. Phil Bredesen recently signed into law legislation extending unemployment benefits with federal funding provided by the American Recovery and Reinvestment Act (ARRA).
The Tennessee Extended Benefits Program adds a maximum of 20 weeks of benefits for claimants who exhausted their emergency unemployment compensation benefits on or after Feb. 28.
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“The extended benefits provided by the Recovery Act will help eligible Tennesseans who have exhausted their emergency unemployment benefits,” said James Neeley, commissioner of the Tennessee Department of Labor and Workforce Development, in a news release.
“And since the federal government pays 100 percent of the costs to extend the benefits, the money will not be drawn from Tennessee’s unemployment trust fund,” Neeley said.
Of course not mentioned, To be eligible for the "Recovery" money we had to extend benefits to new people previously not covered (Part time employees), and put the rate up to levels in most cases well over 700% of previous federal mandates. No cuts were allowed dispite a decreaseing reserve.
Commenting by HaloScan
