The Department of Unemployment Insurance has released its latest quarterly report, showing that the state’s Unemployment Insurance (UI) Trust Fund is projected to become insolvent sooner than previously expected. The fund is now forecasted to reach a negative balance by the last quarter of 2027, moving up from earlier projections of insolvency in 2028.
Rising unemployment rates are contributing to the worsening outlook. The report estimates that the UI Trust Fund will have a deficit of $134 million at the end of 2027. This shortfall is projected to grow to $370 million in 2028 and $568 million in 2029. As a result, employers could face additional rate hikes when the rate schedule increases to level G, and further borrowing may be required to restore solvency. These new deficits come on top of nearly $5 billion in Covid-related debt that business owners are still repaying.
NFIB has put forward several recommendations for lawmakers aimed at reforming the state’s UI system. “Freezing our 2nd highest in the nation maximum benefit ($,1051/wk) Ending the 30 week duration trigger (MA is the ONLY state with 30 weeks) Strengthening eligibility requirements by requiring a time work test (at least 2 quarters to set an attachment to the workforce) Using state dollars to shore up the trust fund like NY state that recently provided nearly $7 billion to help provide relief for employers and UI recipients.”
The organization continues to monitor developments and encourages stakeholders to contact lawmakers about this issue.
