Testimony before the Joint Legislative Labor and Workforce Development Budget Hearing

 

In February 26 testimony before the Joint Legislative Budget Hearing, James A. Parrott, Senior Fellow at the Center for New York City Affairs (CNYCA), challenges Governor Kathy Hochul’s proposal to use $165 million in taxpayer funds to pay the interest payments on New York’s Unemployment Insurance (UI) trust fund debt.

Parrott argues that the governor’s proposal is not even an insufficient bandaid, but rather the equivalent of “blowing a kiss” on a gravely wounded system.. Parrott goes on to state that without UI financing reform, the debt will not be paid off until 2030 and will cost New Yorkers an additional $400 million— assuming there is no recession.

Parrott concludes his testimony by proposing UI benefit increases and temporary UI debt paydown surcharge, featuring a higher taxable wage base ($100,000) and tax exemptions for small businesses, which would allow debt repayment by 2028. Click below to read more.

 
EconomySeth MoncreaseReport, testimony