Labor and Employment - Unemployment Insurance - Modernization and Tax Relief Act

Dear friends:

The national recession put tremendous pressure on Maryland’s unemployment system, as more of our friends and neighbors than we could have imagined turned to the system for help. Statewide, unemployment claims jumped by 38,000 from December 2008 to December 2009. In our legislative district, the number rose by 1,068, or 46%.

These unprecedented challenges drained our unemployment insurance fund and drove up rates for employers. We faced two equally bad choices – cutting benefits for people who lost their jobs during the recession or increasing costs borne by employers.

This week, by working together, we forged a compromise that allows us to pursue a third option – modernizing Maryland’s unemployment insurance system in a way that offers workers better benefits and employers more flexibility.

The compromise balances the needs of the business community against those of working men and women – which is why it drew support from business groups, labor organizations, conservative Republicans and liberal Democrats alike.

It is also an important reminder that the legislature can effectively bring people together to solve problems. Lawmakers from around Maryland set ideology and partisanship aside to listen to small business owners and create a bill supported by the Maryland Chamber of Commerce, Maryland Retailers Association and labor groups from around the state.

In this compromise legislation, we will offer workers better benefits by protecting benefits for part time workers and expanding benefits for those enrolled in job training programs. We will provide employers more flexibility by allowing them to spread payments over a longer period and reduce their interest rates. Most importantly, the proposal is cost neutral.

If you want to read the bill and see the votes, click here: http://mlis.state.md.us/2010rs/billfile/sb0107.htm

As our economy emerges from the recession, we cannot increase the burden on employers. Nor can we deprive unemployed workers of their financial lifeline. This compromise accomplishes these goals.

I am here to serve you – and I can serve you best when I hear from you on these and other issues. If you have any thoughts, ideas, questions or concerns, please contact me. You can reach my Annapolis office at 410-841-3620 or by email at katherine.klausmeier@senate.state.md.us.

Sincerely,

Kathy Klausmeier
State Senator
8th District - Baltimore County