FRANKFORT, Ky. (AP) - The Senate Judiciary Committee is
considering a House bill that could save Kentucky employers $600
million in unemployment insurance tax payments.
The proposal by House Speaker Pro Tem Larry Clark, a Louisville
Democrat, would allow the state to borrow money to pay the interest
on $948.7 million in federal loans during the recession to pay
unemployment benefits. If the state doesn't make payments on the
loans by Sept. 30, the unemployment insurance tax will increase
from $63 to $420 per worker next year, Clark said.
The bill would allow Kentucky Employers' Mutual Insurance to
purchase a revenue bond to make the 2011-13 interest payments
The committee heard the bill Wednesday morning but delayed a
vote to allow members more time to study an amendment.
The legislation is HB 495.
(Copyright 2012 by The Associated Press. All Rights Reserved.)