Louisiana Senate Bill SCR5

Louisiana 2020 2nd Special Session

• Introduced: 9/30/20
• Refer: 9/30/20
• Refer: 10/5/20
• Refer: 10/6/20
• Report Pass: 10/12/20
• Engrossed: 10/14/20
• Refer: 10/14/20
• Report Pass: 10/15/20
• Passed: 10/21/20

Caption

Suspends certain provisions of law relative to the application of certain wages and benefits for the next calendar year. (Items #8 and #30) (EN SEE FISC NOTE SD See Note)

Impact

The measure is intended to prevent the insolvency of the state's unemployment compensation trust fund, which has been under severe strain due to unprecedented job losses linked to the pandemic-induced economic shutdown. By suspending the usual procedures that trigger tax increases for businesses and benefit decreases for unemployed workers, SCR5 aims to stabilize the financial environment for both groups during a critical recovery period. This decision is particularly relevant as businesses begin to reopen and workers are slowly returning to their jobs.

Summary

SCR5 is a Senate Concurrent Resolution that aims to suspend certain provisions in state law regarding unemployment insurance for the upcoming calendar year. Specifically, it seeks to halt the determination of the unemployment insurance taxable wage base and the corresponding calculations for maximum weekly benefits as outlined in R.S. 23:1474. This proposal is a response to the fiscal challenges posed by the COVID-19 pandemic, which has led to significant increases in unemployment claims and a dramatic decrease in the state’s unemployment compensation trust fund balance.

Sentiment

The sentiment surrounding SCR5 has been largely supportive, reflecting the urgent need for measures that address the economic impact of the pandemic. Many legislators endorse the resolution as a necessary intervention to stabilize both businesses and unemployed workers during a time of crisis. However, there remain discussions regarding the long-term viability of the unemployment fund and the importance of ensuring that benefits adequately support workers in need.

Contention

While there is overwhelming support for SCR5, some stakeholders raise concerns about the long-term implications of suspending these provisions. Critics argue that continuing to suspend standard calculations may lead to further strains on the unemployment fund in the future, ultimately necessitating more significant reforms to sustainably address funding and benefit adequacy. The resolution underscores conflicting views on the balance between immediate economic relief and the health of the unemployment compensation system in the long run.