Home Back Issues February 2009 Jobless fund steady despite rising claims

Jobless fund steady despite rising claims

| Print |  Email
Archives - February 2009
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

The Scott Kveton affair

News
Wednesday, July 09, 2014
ScottKvetonBY LINDA BAKER | OB EDITOR

Scott Kveton, the CEO of Urban Airship is taking a leave of absence from the company. As the story continues to unfold, here’s our perspective on a few of the key players.


Read more...

Risks & rewards of owning triple net investments

Contributed Blogs
Thursday, July 24, 2014
NNNinvestmentBY CLIFF HOCKLEY | OB GUEST CONTRIBUTOR

With the increasing retirements of Baby Boomers, a massive real estate shift has created a significant increase in demand for NNN properties. The result? Increased demand has triggered higher prices and lower yields.


Read more...

Attack of the Robin Sages

Contributed Blogs
Monday, July 07, 2014
070714 thumb linkedinfakesBY TOM COX | OB BLOGGER

Named after the 2010 experiment by Thomas Ryan, "Robin Sages" are fake social media profiles designed to encourage linking and divulging valuable information.


Read more...

Interview: Dr. Mark Goulston

Contributed Blogs
Thursday, July 10, 2014
JustListenBY TOM COX | OB BLOGGER

Tom Cox interviews Dr. Mark Goulston, author of Just Listen, Discover the Secret to Getting Through to Absolutely Anyone.


Read more...

Green Endeavor cleans up

News
Wednesday, August 06, 2014
080614 ULnew greenendeavorBY LINDA BAKER | OB EDITOR

Portland startup Green Endeavor strikes gold, inking a partnership with Underwriters Laboratories, an Illinois-based consulting and certification company with offices in 46 countries.


Read more...

Private liberal arts education: superior outcomes, competitive price

Contributed Blogs
Tuesday, August 26, 2014
0826 thumb collegemoneyBY DEBRA RINGOLD | OP-ED CONTRIBUTOR

Why has six years become an acceptable investment in public undergraduate education that over-promises and underperforms?


Read more...

Community colleges and sustainability

Contributed Blogs
Thursday, July 31, 2014
sustainabilityBY MARY SPILDE | OB GUEST CONTRIBUTOR

Faced with the aftermath of the “great recession,” increasing concern about the environment and dwindling family wage jobs, we have some very important choices to make about our future.


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