2010
       
       
       
       
       
       
       
       
       
       
       HOUSE RESOLUTION 10-1007
       
       BY REPRESENTATIVE(S) Frangas,  Curry, Miklosi, Apuan,
       Casso, Court, Ferrandino, Fischer, Gagliardi, Hullinghorst, Labuda,
       Levy, McFadyen, Merrifield, Pommer, Soper, Todd.
       
          CONCERNING THE NEED FOR ASSISTANCE FROM THE
       FEDERAL GOVERNMENT FOR UNEMPLOYMENT
       INSURANCE BENEFITS, AND, IN CONNECTION THEREWITH,
       URGING THE FEDERAL GOVERNMENT TO EXTEND THE
       INTEREST-FREE PAYBACK PERIOD FOR LOANS RECEIVED
       BY THE STATE OF COLORADO. 
       
          WHEREAS, In 2009, more than 137,468 Colorado citizens collected
       unemployment insurance; and
       
          WHEREAS, In 2009, the Colorado Unemployment Trust Fund paid
       out approximately $1.1 billion in unemployment benefits, which
       represents an increase of more than 157% over 2008 and 248% over
       2007; and
       
          WHEREAS, Colorado employers have struggled in this difficult
       economic environment, shedding more than 100,000 jobs in calendar year
       2009; and
       
          WHEREAS, Thousands of Coloradans who have been laid off need
       to continue receiving unemployment benefits in order to support
       themselves and their families while seeking new employment; and
       
          
       
       
       
       
       
       
          WHEREAS, In May 2008, the Unemployment Insurance Trust Fund
       maintained a healthy fund balance of $721 million, but due to the
       economic downturn, in January 2010, the trust fund became insolvent and
       Colorado began taking loans from the federal government to pay
       unemployment benefits; and
       
          WHEREAS, The Unemployment Insurance Trust Fund is funded
       100% by premiums paid by employers, and as the balance of the fund
       decreases, premiums paid by many employers increase; and
       
          WHEREAS, In addition to existing premiums, Colorado law requires
       employers to pay a special assessment to pay back interest on federal
       loans; and
       
          WHEREAS, On February 7, 2009, President Barack Obama signed
       the "American Recovery and Reinvestment Act", which waived interest
       on all unemployment insurance trust fund loans for states until December
       31, 2010; and
       
          WHEREAS, Experts expect that Colorado will have a negative trust
       fund balance until at least 2012, and will need to take out loans from the
       federal government for two years or more; and
       
          WHEREAS, By 2012, Colorado and up to 40 other states are expected
       to borrow funds from the federal government to continue paying
       unemployment benefits; and
       
          WHEREAS, Colorado employers, just as they are recovering from a
       recession, will be responsible for repayment of interest charges on
       outstanding loans; and
       
          WHEREAS, Extending the interest-free provision could potentially
       save those employers subject to interest repayment assessments more than
       $20 million per year; and
       
          
       
       
       
       
       
          WHEREAS, Employer funds not spent on interest repayment could
       potentially be available to fund additional hires or to avoid additional
       layoffs; now, therefore,
       
          Be It Resolved by the House of Representatives of the Sixty-seventh
       General Assembly of the State of Colorado:
       
          That, in order to encourage economic growth, stabilize the economy,
       and not place an additional burden on employers looking to recover from
       the current downturn, we, the members of the House of Representatives:
       
          (1)  Urge the federal government to work expeditiously to extend the
       interest-free payback period for loans taken out by states to pay
       unemployment benefits until economic recovery is underway so that
       Colorado has the opportunity to overcome the economic downturn; and
       
          (2)  Support the Governor's Office, both the current and future
       administrations, and the Colorado Department of Labor and Employment
       in their ongoing efforts as they work with federal government officials
       toward securing an extension for the interest-free payback period.
       
          Be It Further Resolved, That a copy of this Resolution be sent to each
       member of Colorado's Congressional Delegation; the President of the
       United States, Barack Obama; Hilda L. Solis, Secretary of the United
       States Department of Labor; Governor Bill Ritter, Jr.; and Donald J.
       Mares, Executive Director of the Colorado Department of Labor and
       Employment.
       
       
       
       ________________________________________________________
       Marilyn Eddins                  Terrance D. Carroll 
       CHIEF CLERK OF THE HOUSE        SPEAKER OF THE HOUSE
       OF REPRESENTATIVES                OF REPRESENTATIVES