New York State Assemblywoman Marianne Buttenschon (D-Utica/Rome) announced today that she recently sent a letter to Secretary Marty Walsh of the U.S. Department of Labor urging them to alleviate the burden on New York’s Unemployment Trust Fund.

Buttenschon joined several of her colleagues who expressed concerns over the hardships that several small business owners will face should the Department of Labor increase their unemployment insurance premiums.

“Back in January, I helped pass a bill ensuring that unemployment insurance (UI) premiums and experience ratings for businesses would not dramatically increase due to the unprecedented uptick in unemployment claims due to the COVID-19 pandemic. Unfortunately, in order to pay back the state’s debt to the federal government, the trust fund has been forced to raise unemployment insurance rates for these businesses," Buttenschon stated. "Our business owners have already faced tremendous tribulations as a result of the pandemic. They need our support now more than ever. Adding an additional cost burden amid their recovery is taking a step backwards and instills fear among owners that are already struggling with limited staff and unstable monthly income. If the outstanding debt accumulated by New York State would be forgiven, or if the repayment period was expanded from two years to twenty, our local businesses will no longer be held down by pandemic-era debt, and we can truly begin the economic recovery process."

The full text of the letter is below:

May 24th, 2021

Secretary Martin J. Walsh
U.S. Department of Labor
200 Constitution Ave NW
Washington, DC 20210

Dear Secretary Walsh:

I am writing today as Chair of the New York State Assembly Standing Committee on Small Business to urge federal government action related to Title XII Advances to New York’s Unemployment Trust Fund. I am joined by many colleagues who share my concern with the impact this is having on thousands of New York businesses.

As the early epicenter of the COVID-19 Pandemic, New York took significant action to control the spread of the virus and has since that time accrued $9.2 billion in federal debt related to unemployment benefits. This is an outsized burden that is part of the $51 billion total that 19 states have borrowed for their trust funds. This debt was a necessary result of our state’s responsibility to keep the trust fund solvent while offering needed support to displaced workers over the past year.

One of the additional consequences of the unemployment crisis caused by the pandemic is the impact it is having on unemployment insurance premiums paid by businesses. New York State took action in January to make sure experience ratings during the pandemic did not unduly increase these rates for businesses. Unfortunately, to pay back the debt owed to the federal government on the required timeline, the state trust fund has been forced to raise the rates on struggling businesses. This means that, just as we are beginning to make progress with the vaccine in our state and taking steps to fully reopen our economy, businesses are being forced to pay crippling increases in unemployment insurance premiums. This is impeding the rehiring process.

Please consider taking action to help alleviate this burden on the state trust fund and, ultimately, on New York businesses. Forgiveness of outstanding debt acquired during this health crisis would immediately solve this challenge for the state Unemployment Trust Fund. Alternatively, extending the repayment period from two years to twenty years before triggering the credit reduction status would allow for a rate increase over time that would not burden employers who are struggling to remain afloat.

Your efforts leading the department are sincerely appreciated as we begin the slow and steady process of economic recovery. Thank you for your attention to this significant challenge to business recovery.

Sincerely,

Hon. Albert A. Stirpe
127th Assembly District
THE ASSEMBLY STATE OF NEW YORK

ALBERT A. STIRPE, JR.
Assemblyman 127th District

Didi Barrett
106th Assembly District

Harry B. Bronson
138th Assembly District

Patrick Burke
142nd Assembly District

Marianne Buttenschon
119th Assembly District

Sarah Clark
136th Assembly District

William Conrad III
140th Assembly District

Patricia Fahy
109th Assembly District

Aileen Gunther
100th Assembly District

Pamela Hunter
128th Assembly District

Billy D. Jones
115th Assembly District

Anna Kelles
125th Assembly District

Jennifer Lunsford
135th Assembly District

Donna Lupardo
123rd Assembly District

William B. Magnarelli
129th Assembly District

John McDonald
108th Assembly District

Karen McMahon
146th Assembly District

Demond Meeks
137th Assembly District

Crystal Peoples-Stokes
141st Assembly District

Jonathan Rivera
149th Assembly District

Angelo Santabarbara
111th Assembly District

Philip Steck
110th Assembly District

Monica P. Wallace
143rd Assembly District

Carrie Woerner
113th Assembly District