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One of PA Chamber members’ top legislative priorities – unemployment compensation reform – is receiving attention in the state legislature.

The Senate and House are both acting on legislation necessary to extend federally funded jobless benefits for an additional 13 weeks, while also adopting necessary reforms to the state’s Unemployment Compensation system in an effort to address the UC Trust Fund debt and control future costs.

One reform measure (S.B. 1030) was passed by the full Senate on Tuesday, May 24 by a unanimous vote, while a second bill (H.B. 916) is currently stalled on second consideration in the state House.

Both bills contain language to tighten eligibility, including provisions that would require UC recipients to actively participate in work search programs and that address offsets for severance pay. Both also address “relief from charges” and other benefit-related technicalities of the UC Law.

The main cost-savings difference is that H.B. 916 would address weekly UC benefit rates. Under the state’s current UC law, a claimant’s weekly benefit rate is determined by the highest quarterly wage in the claimant’s base-year period, or 50 percent of full-time weekly wage, whichever is greater. Under H.B. 916, a claimant’s weekly benefit rate would be determined by the average of the three quarters during a claimant’s base year period in which the claimant earned his highest quarterly wage, or 50 percent of full-time weekly wage, whichever is greater. This change would result in an annual cost savings of $193 million.

If H.B. 916 is enacted, the UC Trust Fund debt will be repaid and the fund will be solvent, carrying a $670 million balance. The PA Chamber’s memo of support for H.B. 916 is available here.

The PA Chamber also expressed in a memo to Senate members that while S.B. 1030 is a good start in reversing the current trend of excessive debt to the federal government, additional measures in H.B. 916 are necessary to bring solvency back to the UC Trust Fund.

PA Chamber members are hopeful that both chambers can soon agree on legislation that will make sure the UC system is there for those who truly need it, and effectively slow the growth of the fund so that Pennsylvania can begin resolving its burdensome UC debt.

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The Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business association, with thousands of statewide members representing businesses of all sizes and all industry sectors. The PA Chamber is The Statewide Voice of Business™. More information is available on the Chamber’s website at www.pachamber.org.