Governor Signs Unemployment Insurance Trust Fund Bill (HB1379)
Governor Daniels signed HB1379 yesterday. The bill passed the General Assembly (46-3 in the Senate, 52-47 in the House).
Governor Daniels noted, "It's very imperfect. It doesn't fix the problem, but it's some progress and it begins to make a few reforms that I think will be helpful. I will say this on its behalf: It begins to address the unfairness between big businesses, which have been subsidized by small businesses for a long time."
Indiana ran out of money late last year and has borrowed about $800 million from the federal government to pay benefits. That number is easily expected to exceed $1 billion this year. Lawmakers were tasked with making the fund solvent again and start paying back the federal loans.
Businesses pay unemployment premiums based on their usage of the fund. The bill raises the taxable wage base from $7,000 to $9,500. The tax rates will be between 0.7 percent and 9.5 percent in 2010 and 0.75 percent and 10.2 percent in 2011. This will bring in $315 million in new revenue from increased taxes on businesses in 2010 and $365 million in 2011.
The Fort Wayne Chamber supported tightening eligibility overall and for seasonal employees (not included in the new law). The Chamber opposed implementation of new taxes, including "employee" taxes that would create a new cumbersome process on employers and employees (not included).
Governor Signs Allen Co-Fort Wayne CIB
The Governor signed an initiative that has been talked about for years in our community. It passed in the final moments of the session on April 29th.
In 2011, there will be an excess of food and beverage tax revenue not needed for bond payments that will fund the new CIB. The legislation also expands the Professional Sports and Convention Development Area to include IPFW and caps the district at $3 million. $2.6 million will go to the Coliseum and the remainder will go to the CIB. The board has three appointments from the city, three from the county, and the seventh member chosen by the six. Money for the CIB goes only towards new projects for the area - not to fund existing projects like Harrison Square or the Coliseum. The joint City-County CIB will be able to maximize those dollars toward economic development projects, allowing Allen County and Fort Wayne the opportunity to invest in itself.
"This will allow for a community decision-making process and prioritizing of projects," said Rep. Phil GiaQuinta. "This also provides us an avenue other than having to go to Indianapolis to seek funds for worthy projects."
GiaQuinta, who filed the legislation, noted the long process and the many hours spent going over the details of the many entities that were involved. "We wouldn't have been able to get this done without the cooperation of the delegation, the Chamber, the City, and the County."
Senator David Long commented, "This was a tremendous achievement for our delegation in a difficult time for the legislature. We have provided a way to drive economic opportunity to our area for generations to come, while protecting the economic well- being and needs of the Coliseum."
He continued, "I want to thank Phil GiaQuinta and Randy Borror and the Northeast delegation for the work on this issue and the effort to get this done."
Local legislative leaders on both sides of the aisle, along with the Chamber, worked hard to pass this bill through in the final minutes of the session, especially Senator Long, as President of the Senate, and Representative GiaQuinta as Chairman of House Rules. Also on the bill were Senator Wyss and Representatives Bell, Moses, and Borror. The Chamber has championed for a CIB for many years - it is exciting to see such a long-standing goal finally reached!
Chamber President & CEO Kris Foate will speak at the Small Business Recognition Breakfast hosted by the Northeast Indiana Small Business Development Center (NEISBDC). The event takes place Friday, May 22 from 7:30 a.m. to 9 a.m. at the Chamber of Commerce as part of National Small Business Week. Foate will speak along with Mayor Tom Henry, Indiana District Small Business Administration Director Gail Gesell and NEISBDC Regional Director Ken McCrory on the importance and impact of small businesses to the economy.
