Connecticut House Bill HB05968

Connecticut 2015 Regular Session

• Introduced: 1/22/15
• Refer: 1/22/15

Caption

An Act Requiring Funds From The Budget Reserve Fund And Any Excess Revenue To Be Used To Pay Interest Related To State Borrowing For Unemployment Compensation Benefits.

Impact

If enacted, HB 05968 would amend existing statutes to ensure that the state prioritizes using excess revenues and reserve funds to address its obligations concerning the interest on federal loans for unemployment benefits. This approach is intended to alleviate the financial strain on businesses which, in previous instances, had to bear the brunt of special assessments when the state could not independently manage these payments. The bill is expected to streamline funding operations for unemployment benefits, fostering a more stable financial environment for businesses during economic downturns.

Summary

House Bill 05968 is proposed legislation that mandates the utilization of funds from the Budget Reserve Fund and any excess revenue to cover interest payments related to state borrowing for unemployment compensation benefits. The bill aims to mitigate the burden on businesses that face special assessments associated with these interest payments, proposing a systematic approach to managing state liabilities associated with unemployment funding.

Contention

While the bill addresses important fiscal responsibilities of the state, it may spark debates regarding the implications of relying on reserve funds and excess revenues to cover such liabilities. Critics may argue that this could divert funds from other critical areas of state expenditure or create a dependency on reserves rather than establishing a traditional budgetary allocation for unemployment compensation benefits. Proponents, on the other hand, advocate that prioritizing the use of surplus revenues in this manner can prevent unexpected financial burdens on the business community during periods of economic distress.