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State unemployment system under review

Thursday, February 9, 2012
(Updated 5:40 am)

— The $2.7 billion debt that North Carolina has incurred to pay unemployment benefits in the wake of the recession has led the N.C. Chamber of Commerce to commission a comprehensive study of the state's unemployment system.

"The key point for us is, we're looking at everything," said Gary Salamido, a lobbyist for the chamber. "We don't know what the solution is yet."

The Chamber has hired a Columbus, Ohio, law firm to conduct the study, led by attorney Anthonio Fiore. Fiore spent a decade as lead lobbyist for labor and employment issues for the Ohio Chamber of Commerce. The study began last month and should be completed by April 18.

The firm's mandate is to analyze the state's current unemployment system, including its unemployment insurance laws; identify the best practices of other states and recommend on how to return the state's unemployment insurance trust fund to solvency.

The firm also will look at the benefits the state pays and ways to help the unemployed find jobs.

"What we're leaning toward right now is something that really puts a heavy emphasis on worker training and re-employment and how do we get a world-class community college system ... in charge of putting people back to work," Salamido said.

The $2.7 billion the state has borrowed to pay unemployment benefits came from the federal government.

Beginning this year, the state's employers are paying more in federal unemployment taxes. Those taxes will escalate every year until the state pays off its debt.

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timflowers

February 9, 2012 - 1:01 pm EST

Why not look at the root cause first? All of the people on unemployment were fired without just cause, due to no fault of their own. Had job performance or misconduct been the cause, they wouldn't be eligible for unemployment benefits. We should be trying to determine why employers have let so many productive people go, and why so many employers then refuse to hire anyone who is currently unemployed.

Most likely though, our state leaders will attempt to demonize aid recipients and paint them as burdens of the state, rather than figuring out why they are unemployed to begin with.

awsmview

February 9, 2012 - 3:56 pm EST

Root Cause I can answer that question.

Richard Burrs " No " vote blocks jobs from returning to North Carolina !

September 28,2010.

S. 3816 (Creating American Jobs and Ending Offshoring Act ) a Senate bill designed to end tax breaks for U.S. companies that move jobs and manufacturing plants overseas.

With a 53-45 vote, Senate Republicans blocked the vote on a "jobs" bill.This bill would have given companies a break on payroll taxes for new U.S. jobs that replace positions that had been based overseas. The measure would have also reined in tax incentives for moving jobs outside the United States.

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