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