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In Depth: Nevada's Unemployment Crisis
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Gibbons Wants Lower Unemployment Taxes
State Jobless Fund Running Dry
POSTED: 1:37 pm PDT October 1,
2009
UPDATED: 1:59 pm PDT October 1,
2009
LAS VEGAS -- Although Nevada is borrowing nearly $100 million a month to keep its unemployment fund solvent, Gov. Jim Gibbons wants businesses to pay less money into the fund.Gibbons made the recommendation to a state panel Thursday, saying lowering the unemployment insurance tax would help retain jobs and create new ones.Nevada is currently experiencing record unemployment. At 13.2 percent, the state’s jobless rate is the second highest in the country.Survey: How Should Nevada Keep Its Unemployment Fund Solvent?Gibbons proposed temporarily reducing the average employer assessment from 1.3 percent to 1 percent. Gibbons said the move would save businesses about $70 million next year.Last month, Gibbons rejected the idea that business taxes should be raised to keep the state from borrowing money to fill the unemployment fund.Related Link: Nevada Unemployment Fund Running DryThe state Employment Security Advisory Council meets Oct. 6 to consider rates for 2010.Nevada has already applied to the federal government to borrow up to $264 million for the rest of this year and up to $1 billion next year to meet jobless benefit claims.
Copyright 2009 by KVVU.com. The Associated Press contributed to this report. All rights reserved.
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