North Carolinians who find themselves jobless in the New Year could face a smaller unemployment check, and a substantially shorter period of time for receiving benefits as they look for work.
Members of the Revenue Laws Committee rolled out the much-anticipated proposal Wednesday – a first step to repaying $2.5 billion borrowed from the federal government to pay benefits throughout the Great Recession.
The plan would require companies to pay more in unemployment insurance taxes, while also adjusting the benefit amounts, duration, and eligibility for individuals. Notably, the the maximum weekly benefit would drop from $535 to $350.
To better understand what’s being proposed, here are three slides from the committee presentation:
Slide #1: Benefits would be tied to NC’s unemployment rate – the lower the rate, the fewer weeks of benefits.
Slide #2: The proposed weekly benefit amount would be based on the average of what states in the Southeast pay jobless workers.
Slide #3: Lawmakers are also considering a new formula for how the weekly benefit amount is calculated.
For a one-page summary in .pdf format of what lawmakers are considering, click here.
(Above slides: General Assembly’s Fiscal Research Division.)