Louisiana governor, Legislature want to avoid unemployment program changes

Gov. John Bel Edwards and Louisiana’s legislative leadership are looking for ways to avoid the consequences of draining the state’s unemployment trust fund, which is set to run out of money Oct. 5.

Senate President Page Cortez, R-Lafayette, and House Speaker Clay Schexnayder, R-Gonzales, used a procedural vote to block official recognition of the unemployment trust fund’s meager balance Friday. Their move prevented a new round of business taxes and unemployment benefits’ cuts scheduled for 2021 from being formally set in motion.

Separately, Gov. John Bel Edwards announced that he was suspending one of the same business taxes from taking effect in the first half of 2021 as well. Republican lawmakers — who are often at odds with the Democratic governor — had been considering suspending the same tax when they go into a special session Monday evening.

Everyone is in agreement that the state needs to find a way to backfill its depleted unemployment fund, which pays for residents’ unemployment benefits. Prior to the COVID-19 pandemic, the fund stood at over $1 billion. But after months of record-breaking unemployment, it’s dropped to just $49 million.

Read more: https://lailluminator.com/2020/09/26/louisiana-governor-legislature-want-to-avoid-unemployment-program-changes/