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House Democrats Present Unemployment Fund Fix

April 20, 2009

House Democrats have put forth a plan they say will return funds to the now bankrupt accounts that pay benefits to people out of work, while paying back hundreds of millions of dollars of federal borrowing that began in November to pay those benefits. The plan, presented during a conference committee hearing at the Indiana statehouse today, relies on over a billion new business tax dollars annually. It also calls for as much as 390 million dollars in cost cutting measures. Committee chairman David Niezgodski of South Bend says it includes flexible tax rates that rise and fall with the amount of money available to pay unemployment benefits.

“This trigger and index system is an attempt to make sure that Indiana never reaches a deficit like this again.”

Niezgodski and Republican Senator Dennis Kruse of Auburn, two of the lead negotiators on the unemployment insurance insolvency matter, say they believe the legislature can reach an agreement by the end of the session next Wednesday.

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