Louisiana Senate Bill SCR3

Louisiana 2021 Regular Session

• Introduced: 3/29/21
• Refer: 3/29/21
• Refer: 4/12/21
• Report Pass: 4/26/21
• Passed: 4/28/21
• Engrossed: 4/28/21
• Refer: 4/29/21
• Report Pass: 5/13/21

Caption

Suspends certain provisions of law relative to unemployment tax increases and benefit reductions. (EN NO IMPACT OF RV See Note)

Impact

By suspending the provisions that determine the unemployment insurance taxable wage base and benefits calculation, SCR3 intends to alleviate the financial strain on Louisiana businesses still recovering from the pandemic. This resolution is particularly significant given the dramatic drop in the state's unemployment compensation trust fund, whose balance decreased from over one billion dollars pre-pandemic to a precarious status post-crisis. The suspension aims to maintain a more stable environment for both businesses and unemployed individuals, thus fostering a more manageable economic recovery.

Summary

SCR3 is a Louisiana Senate Concurrent Resolution that aims to suspend certain provisions related to unemployment insurance until sixty days after the final adjournment of the 2022 Regular Session. The primary objective is to halt the automatic increases in unemployment taxes for businesses and decreases in benefits for workers during a period of economic recovery following the pandemic. The resolution seeks to stabilize conditions for both businesses and unemployed individuals who continue to navigate the aftermath of significant economic disruption caused by COVID-19.

Sentiment

The sentiment around SCR3 has been supportive, particularly among legislators concerned about the implications of high unemployment taxes on local businesses. The resolution received unanimous support in the Senate vote, signaling a bipartisan agreement on the need to address the financial hardships faced by both employers and job seekers. However, underlying concerns remain about the long-term sustainability of the unemployment compensation trust fund if the economy does not recover as anticipated.

Contention

While the bill has broad support, some contention exists regarding the implications of extending such suspensions. Critics may argue that continuously postponing adjustments to the unemployment insurance system could lead to fiscal uncertainties in the future. The resolution's temporary nature offers a stop-gap measure, but questions remain about how it will affect the structural integrity of Louisiana's unemployment insurance framework in the long run, especially as the state navigates its recovery from the COVID-19 crisis.