New York among outlier states for unemployment debt

New York is among a small group of states that still owe billions of dollars to the federal unemployment trust fund, a published analysis Friday by state comptroller Tom DiNapoli found.

New York’s debt stands at $8.1 billion, second only to California.

“New York’s unemployment insurance debt has remained stubbornly high despite steady job gains and state tax rates that have already increased to maximum allowable levels,” DiNapoli said. “In the absence of any significant federal or state action, repaying the loan and replenishing the unemployment fund will require federal tax increases that could be burdensome for small businesses and could impede the state’s economic recovery. “

Business organizations have denounced the outstanding debt and urged the state government to take action. The cost of debt repayment was imposed on businesses through unemployment insurance contributions.

New York’s economy was hit hard early and hard by the COVID-19 pandemic, which led to a record number of jobless claims. This required the state to borrow from the federal government starting in May 2020. If the interest is not fully repaid by the November 10 deadline, the cost of interest will increase, resulting in an increase in tax on the federal portion of the bills. employer tax.

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John A. Bogar