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