The National Federation of Independent Business (NFIB) is calling on Massachusetts lawmakers to address the state’s Unemployment Insurance Trust Fund debt crisis, taking inspiration from recent developments in New York. Christopher Carlozzi, NFIB’s State Director for Massachusetts, highlighted the agreement reached by New York Governor Kathy Hochul and legislative leaders to repay approximately $6.5 billion in unemployment insurance debt to the federal government.
Carlozzi remarked, “Start spreading the news! In New York this week, NFIB applauded Governor Kathy Hochul and its legislative leaders for coming to agreement to pay off New York’s outstanding federal UI debt.” He added that such actions could prevent higher unemployment insurance taxes and assessments for small businesses already struggling with economic challenges stemming from the pandemic.
Massachusetts faces its own challenges with a nearly $5 billion UI debt due to federal borrowing during the pandemic. An accounting error by the state accounts for $2.1 billion of this debt. Carlozzi urged local legislators, asking, “Will Governor Healey propose something similar? Massachusetts needs to help provide relief for employers by at least covering the $2.1B state error.”
He further emphasized the need for reform before another economic downturn hits: “Our broken unemployment insurance system urgently needs fixing, and the time to do it is now before the next economic slowdown.”
Currently, Massachusetts businesses are subject to some of the highest unemployment insurance taxes nationwide. Projections from the Department of Unemployment Assistance suggest insolvency of the UI Trust Fund by 2028 with an expected deficit exceeding $300 million.
To press their case, NFIB has launched a radio and digital ad campaign urging legislative action on this issue.
For more than eight decades, NFIB has been advocating for small and independent business owners across America as a nonprofit organization driven by its members.
