John Arthur Smith Offers a Compromise on the Unemployment Fund Shortfall



John Arthur Smith

Santa Fe, NM - Senator John Arthur Smith, D-Deming, introduced SB-29 today (Wednesday) he believes is designed to reach a compromise with the governor on shoring up the state's Unemployment Compensation Fund. "This proposal would lower the unemployment insurance rates that New Mexico businesses pay from the rate the legislature believed was necessary earlier this year while raising it from what the governor indicated she would accept," Smith said. "We're splitting the difference evenly." Smith's legislation would set the rate schedule based on what is known as Contribution Schedule 2 for all of 2012 and 2013, except that the administration could raise the rates to Contribution Schedule 3 in 2013 if the Unemployment Compensation Fund drops below 30 percent of the benefits paid this year. Legislation approved earlier this year set the rates at Contribution Schedule 3 beginning in 2012, but the governor vetoed that provision, prompting a court challenge and casting doubt on what rate would apply in 2012.

Susana Martinez

"Without this new legislation, it's likely the Unemployment Compensation Fund will become insolvent, forcing businesses to automatically pay much higher rates," Smith said. "This proposal is a true compromise. It ensures the solvency of our Unemployment Compensation Fund at a time when out-of-work New Mexicans need it most. It guarantees businesses a low, consistent unemployment insurance rate for up to two years and it literally finds the middle ground between what the legislature and governor each support," Smith said.

John Arthur Smith Offers a Compromise on the Unemployment Fund Shortfall