TRENTON – The state announced Thursday that the unemployment insurance trust fund – which registered a deficit in 2009 – will be solvent next week.
“We have managed to get a very important safety net for our workers solvent well before anyone thought possible,” said Governor Chris Christie in a release announcing the solvency.
This will spare employers a huge tax hike next year under the Federal Unemployment Insurance Tax Act to replenish the fund.
There had been approximately $4.6 billion in diversions of funds over two decades for purposes such as balancing budgets or providing charity care.
The state said there would be $211 million in savings to New Jersey employers as a result of the solvency.
Legislators from the 24th District, who sponsored S2404, which eliminated the 10 percent surcharge on employer unemployment taxes during Fiscal Year 2014, applauded the news.
“When companies can reduce costs such as exorbitant UI taxes, those kinds of savings benefit employees, future employees and consumers,” Assemblywoman Alison Littell McHose said in a release.
“Our focus on reducing this expense will help to continue the economic turnaround our state is experiencing.”