This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

NC Legislative Panel Moves Jobless Debt Plan Along

By GARY D. ROBERTSON

RALEIGH, N.C. (AP) â¿¿ A Republican-authored solution to more quickly pay off the $2.5 billion North Carolina owes the federal government for covering unemployment benefits cleared another legislative hurdle Tuesday.

A legislative study committee recommended to the full General Assembly a proposal that would scale back the amount and length of benefits for future unemployed workers and require some higher unemployment tax rates for businesses.

The bill will be introduced when the Legislature begins work in earnest at the end of the month. The House and Senate still would have to pass a measure and present it to new Gov. Pat McCrory, who has called eliminating the debt an early priority.

"All of this will be debated further," Sen. Bob Rucho, R-Mecklenburg, one of the proposal's chief negotiators, told members of the Revenue Laws Study Committee

The plan largely kept intact a pitch presented by GOP finance leaders to the panel in December. It would erase the debt by 2015, or three years earlier than if no changes were made to the method the state is using to pay it down. The proposal is also expected to replenish the state's unemployment trust fund that went into the red during the Great Recession, creating a $2.3 billion reserve in 2021, according to a memo by legislative researchers analyzing the plan.

The maximum weekly benefit for workers would fall from the current $525 to $350, while the maximum number of weeks a jobless claimant could receive state benefits would drop from 26 weeks to 20 weeks in periods of the highest unemployment. The benefit period could actually range from five to 12 weeks in periods of very low unemployment.

North Carolina businesses would continue to see their federal unemployment insurance taxes go up by $21 per employee with every year the debt hasn't been paid off. The companies also would continue to pay a state unemployment tax surcharge and see minimum and maximum contribution rates go up slightly â¿¿ eliminating the zero rate top-rated companies now receive.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs