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

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...

OB Video: Dress for Success

News
Wednesday, July 02, 2014
DFSOBY JESSICA RIDGWAY | OB WEB EDITOR

Dress for Success Oregon promotes the economic independence of disadvantaged women by providing professional attire, a network of support and career development tools.


Read more...

Two sides of the coin

Contributed Blogs
Monday, August 25, 2014
0825 thumb moneyBY JASON NORRIS | OB GUEST BLOGGER

Ferguson Wellman’s investment views on the economy and capital markets.


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...

Video: The 100 Best Survey

News
Thursday, August 28, 2014

100-best-logo-2015 500pxw-1OB Research Editor Kim Moore shares some pointers about the 100 Best Companies to Work For survey.


Read more...

Updated: Disrupting innovation

News
Tuesday, July 08, 2014
070814 thumb disputive-innovationBY LINDA BAKER  | OB EDITOR

The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation  — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment. 

Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.


Read more...

Register for 100 Best Companies survey

News
Wednesday, August 20, 2014
OBM-100-best-logo-2015 150pxwBy Kim Moore | OB Editor

The 2015 survey launched this week. It is open to for-profit private and public companies that have at least 15 full- or part-time employees in Oregon.


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