Editor’s note: Sen. Vince Illuzzi issued this statement on April 15.
One of the most important issues that must be resolved before the General Assembly adjourns is fixing the bankrupt Unemployment Insurance Trust Fund.
If we as a state are forced by inaction to spend even more money to pay interest on the additional money we must borrow from the federal government, that means we will need to further cut state programs and services or raise taxes. Both options are unacceptable.
It’s a priority for the 23,800 employers who support the system. If we fail to act, Vermont employers will face additional and otherwise unnecessary penalty payroll taxes.
It’s a priority for all Vermonters who depend on state programs and services. If we as a state are forced by inaction to spend even more money to pay interest on the additional money we must borrow from the federal government, that means we will need to further cut state programs and services or raise taxes. Both options are unacceptable.
Every legislator and the governor need to ensure that this issue is addressed this year in a meaningful and substantive way. We can’t afford to kick the can down the road for a second year in a row.
If the General Fund was expected to be in the red to the tune of $284 million, there would be alarm bells going off all over the place. A crisis mentality would set in. The same alarms should be going off with regarding to the UI trust fund.
Any time you have any state program expected to run almost $300 million in the red – in this case regarding a state program that is already bankrupt — it’s clear that immediate action is warranted on the part of all the key players. We have a crisis in the Unemployment Insurance Trust Fund.
The businesses that are represented by the organizations whose leaders are with me today are prepared to step up to the plate and do their part to fix the problem. They know that paying more now will avoid paying even more later.
My committee has made the first volley on this issue in the form of S. 290, a bill that is tough on everyone. Like any bill that is introduced, it’s a starting point with a few controversial provisions. There’s something in that bill for everyone to hate.
Since the time that this press conference was planned earlier this week, I understand a meeting is now scheduled between the Governor, the Speaker and the President Pro Tem. That’s positive news, and I hope the next step in moving this issue forward in a meaningful way toward a substantive resolution in the next few weeks.
