Why is There Trouble for New Mexico’s UI Trust Fund? In 2013, to address the impending insolvency of the Unemployment Insurance trust fund, the legislature reformed the way Unemployment Insurance contribution rates are calculated in New Mexico. The new rate calculation methodology became effective January 2015. That means many businesses have seen changes in how much they are paying – some drastically. Now that the new formula has been implemented, we can evaluate Unemployment Insurance benefits as compared to other states around the country.
With that analysis done, a few things are clear and it’s not good news for the long range solvency of our UI Trust Fund: 1) Compared to other states, NM is currently one of the most generous in how maximum unemployment benefits are calculated; 2) The NM UI Trust Fund’s solvency is still in jeopardy and if not properly addressed could lead to the federal government taking over control of the fund. This has happened in several states already; 3) Many NM employers are struggling with increased UI rates and want to know their tax dollars for the unemployed are maximized in the best way possible; and 4) Even though many businesses have increased their UI payments, NM Workforce Solutions projects the 2015 year-end balance of the UI Trust Fund will not be adequately funded per US Department of Labor standards.
URGENT CALL TO ACTION: HB 482 is scheduled to be heard by the House Business and Employment Committee (HBEC) tomorrow, Saturday, 2-28-15, at 9:00 am. The NMBC encourages business leaders and individuals to attend the committee meeting and support changes needed to maintain solvency of the NM UI Trust Fund. If you cannot attend the meeting, we’ve made it easy to participate:
Our Continued Work Depends on You: The NMBC is working hard to improve New Mexico, but we cannot do it alone! Your support can help us reach thousands of New Mexicans with up to date FACTS on issues that affect businesses, employers and hardworking families around the state. The power of coming together DOES make a difference and your financial support allows the NMBC to continue this important work. Join the most effective, non-partisan, pro-business coalition of voters in New Mexico NOW!
Please contact the NMBC at nmbiz@nmbizcoalition.org or 505-836-4223 with any questions or comments.