Home Archives February 2009 Jobless fund steady despite rising claims

Jobless fund steady despite rising claims

| Print |  Email
Sunday, February 01, 2009

STATEWIDE — Oregon’s unemployed drained more than $318 million from the state’s unemployment insurance trust fund in fourth-quarter 2008, as the number of claimants rose to 105,451 by year’s end.

Despite the mammoth payout, Oregon maintains one of the nation’s strongest-performing trust funds. Even if current economic conditions deteriorate, Oregon has enough money in the trust fund — $1.9 billion — to pay benefits for another 23 months. Oregon’s trust fund is one of the most solvent in the nation, according to Oregon Employment Department spokesman Craig Spivey.

Each state typically funds UI benefits by assessing payroll taxes which are pooled into a trust fund. If a state possesses enough reserves to cover 18 months of benefits at its “highest cost” period, or time at which benefits payments were at their highest, without relying on UI payroll tax revenues, its trust fund is considered solvent.

But several states, including California and South Carolina, doled out more benefits payments than they collected in payroll tax revenues last year, meaning their UI trust funds will dry up quickly as the recession worsens. In total, 19 states risk trust fund insolvency in 2009, according to a report by the National Employment Law Project.

“The beauty of Oregon’s tax schedule is that it won’t allow it to happen,” says Spivey. “Even if we did not bring in another dime, the trust fund would last us awhile.”

Oregon uses an eight-tier tax schedule to ensure the trust fund remains solvent. Each September, OED economists evaluate the solvency of the trust fund to determine the proper tax schedule. Given the doubling of UI claims and growing payouts, the OED will implement a tax schedule in 2009 that will mean an increase in payroll taxes.

NICOLE STORMBERG



Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

Are millennials reshaping politics in the Pacific Northwest?

News
Wednesday, April 02, 2014

MillennialsThumbA new report explores the impact of millennials on Oregon's business and political climate.


Read more...

Rapid ascent

March 2014
Tuesday, February 25, 2014
IMG 4255-2BY AMY MILSHTEIN

Kelly Dachtler, president of The Clymb, redefines outdoor retail.


Read more...

Branching out

March 2014
Tuesday, February 25, 2014
DSC04185BY LINDA BAKER

A blueberry bush is a blueberry bush — except when it’s a blueberry tree.


Read more...

The future of money

March 2014
Tuesday, February 25, 2014
BY JAKE THOMAS

An ancient institution moves slowly into the digital age. 


Read more...

The 2014 List: The Top 33 Small Companies to Work, For in Oregon

March 2014
Thursday, February 27, 2014

100best14logoWebOur 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.

 


Read more...

Why I became an educator

News
Tuesday, March 04, 2014
03.04.14 thumbnail teachBY DEBRA RINGOLD | GUEST CONTRIBUTOR

How can we strengthen the performance of institutions charged with teaching what Francis Fukuyama calls the social virtues (reciprocity, moral obligation, duty toward community, and trust) necessary for successful markets and democracy itself?


Read more...

The 2014 List: The Top 33 Large Companies to Work, For in Oregon

March 2014
Thursday, February 27, 2014

100best14logoWebOur 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.

 


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS