SLS 201ES-482 ORIGINAL
2020 First Extraordinary Session
SENATE RESOLUTION NO. 40
BY SENATORS CARTER, LUNEAU, REESE AND WOMACK
UNEMPLOYMENT COMP. Requests the governor, the congressional delegation, and
certain legislative committees to respond immediately to the impact COVID-19 has had on
Louisiana's unemployment trust fund.
1 A RESOLUTION
2 To urge and request the governor of Louisiana, the members of Louisiana delegation of the
3 United States Congress, the Senate Committee on Finance, and the House
4 Committee on Appropriations to respond immediately to the drastic decline in the
5 balance of Louisiana's unemployment trust fund to protect employers and workers
6 during this time of economic uncertainty.
7 WHEREAS, as of March 1, 2020, Louisiana's unemployment trust fund was the
8 seventeenth most solvent in the nation as determined by the United States Department of
9 Labor, with a balance of approximately $1,058,000,000; and
10 WHEREAS, the funds in Louisiana's unemployment trust fund come from state
11 unemployment tax payments made by Louisiana employers on their employee's earnings up
12 to the amount of the taxable wage base; and
13 WHEREAS, the funds in Louisiana's unemployment trust fund are exclusively used
14 for the payment of unemployment benefits to eligible and qualified Louisiana unemployed
15 workers; and
16 WHEREAS, on March 11, 2020, Proclamation 25 JBE 2020 was issued by the
17 governor declaring a public health crisis in the state due to a novel coronavirus commonly
18 known as COVID-19, and that proclamation has continued in effect, renewed in various
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SLS 201ES-482 ORIGINAL
1 degrees in accordance with Centers for Disease Control and Prevention (CDC) guidelines,
2 as the virus has progressed in Louisiana; and
3 WHEREAS, COVID-19 has caused major disruptions to the state's economy, forcing
4 many businesses to temporarily close and many workers to be laid off or furloughed; and
5 WHEREAS, Louisiana's initial unemployment insurance claims for the week ending
6 March 21, 2020, was 72,438, a dramatic increase from the 1,698 initial claims filed for week
7 ending March 7, 2020; and
8 WHEREAS, according to the Bureau of Labor Statistics, U.S. Department of Labor,
9 Louisiana's unemployment rate was 13.3% in May of 2020, which was down from 14.5%
10 in April, but significantly higher than the 4.5% rate in May of 2019; and
11 WHEREAS, approximately $3,460,000,000 in state and federal unemployment
12 benefits have been paid to Louisiana's unemployed workers since March 22, 2020, and the
13 balance of Louisiana's unemployment trust fund as of June 25, 2020, has declined to
14 approximately $550,000,000; and
15 WHEREAS, as the state continues to follow CDC guidelines and progress through
16 the various phases of responsibly opening up the economy, and businesses, workers, and
17 residents become more comfortable and confident, it can be anticipated that the
18 unemployment rate and unemployment claims will decline and revenues from state
19 unemployment taxes will increase, but it will likely take an extensive amount of time before
20 Louisiana's unemployment trust fund will reach prior solvency levels; and
21 WHEREAS, the taxable wage base for determining employers unemployment taxes
22 and the formula for the calculation and maximum weekly amount of a workers'
23 unemployment benefits are set on a calendar year basis and La. R.S. 23:1474 provides a
24 procedure and timeframe for determination of the taxable wage base, benefit calculation
25 formula, and maximum benefit amount for the next calendar year; and
26 WHEREAS, La. R.S. 23:1474 provides that the essential factor in determining those
27 items is Louisiana's unemployment trust fund balance on September first and the projected
28 balance the following September; and
29 WHEREAS, in accordance with La. R.S. 23:1474, as Louisiana's trust fund balance
30 declines, the taxable wage base increases, thereby increasing an employer's state
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1 unemployment taxes and the benefit calculation formula and maximum weekly benefit
2 amount decreases, thereby decreasing an unemployed worker's benefits; and
3 WHEREAS, immediate action is necessary to address the substantial decrease in the
4 balance of Louisiana's unemployment trust fund to avoid a significant increase in the
5 unemployment tax burden on Louisiana employers and a significant decrease in the amount
6 of benefits for an eligible, qualified Louisiana worker for calendar year 2021, which will
7 make economic recovery for Louisiana even more challenging.
8 THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana
9 does hereby urge and request the governor of the state, the members of the Louisiana
10 delegation of the United States Congress, the Senate Committee on Finance, and the House
11 Committee on Appropriations to respond immediately to address the drastic decline in the
12 balance of Louisiana's unemployment trust fund to avoid an additional tax burden on already
13 struggling businesses and a decrease in benefits for already struggling unemployed workers
14 during these uncertain economic times.
15 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
16 governor of Louisiana and to each member of the Louisiana delegation of the United States
17 Congress.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ridge.
DIGEST
SR 40 Original 2020 First Extraordinary Session Carter
Requests the governor of Louisiana, the members of Louisiana's congressional delegation,
the Senate Committee on Finance, and the House Committee on Appropriations to respond
immediately to the drastic decline in the balance of Louisiana's unemployment trust fund to
protect employers and unemployed workers during this time of economic uncertainty.
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