New WashACE Competitiveness Brief on Unemployment Insurance

Yesterday, we released Make Unemployment Insurance Work, a Competitiveness Brief prepared by the Washington Research Council examining one of the critical issues before the 2009 Legislature.

The bottom line:

Washington?s unemployment insurance system remains one of the nation?s most generous.
The average benefit is fifth highest among the 50 states; the minimum benefit is second highest; the maximum benefit, sixth highest.    

Among the factors that must be addressed next session:

First, steps must be taken to bring the state UI system back into compliance with federal requirements. Members of the business community are working in a broad coalition to develop solutions, with technical assistance from the Employment Security Department.

Second, in accordance with the intent of the 2003 legislation, the Legislature should clarify that the statutory enumeration of 11 good causes for voluntarily quitting is exhaustive.

Third, while the UI tax rate of the average employer has declined significantly over the past several years, the state?s rates have remained among the nation?s highest. As a result, the state has built up an unnecessarily large balance in the UI trust fund. The Legislature should adjust the tax rate system to reduce the inflow of funds at times when the trust fund balance is high. 

It's a good overview of our system, recent reforms, and challenges ahead. I encourage you to read it all and share with your colleagues.