Governor Walker’s Reforms Bring Unemployment Insurance Trust Fund Balance to $1 Billion
Projections: Covered employers will see an additional $38 million tax decrease for 2017, in addition to a $97 million decrease in 2016
Madison – Governor Scott Walker announced today that continued growth in the state’s Unemployment Insurance (UI) Trust Fund could trigger the second consecutive drop in the UI tax schedule for covered employers in two years, saving an estimated $38 million in UI taxes per starting in tax year 2017. When combined with last year’s activation of a lower UI tax schedule saving $97 million annually, the total annual savings for some 134,000 Wisconsin employers who are covered by the state’s UI program will be approximately $135 million.
“Wisconsin’s economy continues to improve and, coupled with the significant reforms made to the UI program since 2011, employers and workers today are benefiting from a fair, cost-effective and stable UI system,” Governor Scott Walker said. “With an unemployment rate below the national average, initial UI claims running at their lowest level since 1989 and an historic high in the number of people employed, our state’s economy is headed in the right direction. The growth of our UI Trust Fund provides another positive indicator for businesses looking to expand in Wisconsin and create more jobs.”
“The significant investments and commitment to talent development, reemployment services and UI program integrity under Governor Walker have moved Wisconsin’s Trust Fund from a negative balance of $1.3 billion when Governor Walker took office to a positive balance of over $1 billion at the end of April 2016,” DWD Secretary Ray Allen said. “It’s worth noting Wisconsin’s UI Trust Fund hasn’t had a balance greater than $1 billion since October 2003.”
During the Great Recession, Wisconsin employers experienced higher state and federal UI taxes due to the unprecedented federal loans needed to pay claims to workers. Wisconsin was one of more than 30 states that were forced to rely on federal loans to pay benefits to eligible workers.
DWD provided information about the UI Trust Fund’s $1 billion balance and projected activation of a lower UI tax schedule today to the Unemployment Insurance Advisory Council (UIAC). The UIAC’s support was instrumental in passing many of the legislative and policy UI reforms that have strengthened the integrity of the state’s UI system.
More information about Wisconsin’s UI program, reforms, and program integrity efforts can be found here.
Mentioned in This Press Release
Recent Press Releases by Gov. Scott Walker - Page 2
"Youth Apprenticeship is a key tool for improving educational and employment opportunities for students..."
The recipients will be honored at a ceremony at the Capitol later this year.
Governor Walker Announces Plan to Provide a Long-Term Solution for Wisconsin’s Juvenile Corrections and Treatment SystemsJan 4th, 2018 by Gov. Scott Walker
"Republicans and Democrats alike agree this is the way forward to reform juvenile corrections..."
"Today, as individuals across the state and country gather with family and friends, we wish you and your family a blessed, happy, and healthy New Year."
Governor Walker also declares Saturday "Wear Wisconsin Badgers Red for the Orange Bowl Day”
Executive order in effect for 30-day period
"Wisconsin is working."
Department of Revenue Analysis: Typical Family of Four in Wisconsin to See a $2,508 Tax Cut Under Federal Tax Cuts and Jobs ActDec 27th, 2017 by Gov. Scott Walker
"In Wisconsin, we proved you can provide tax relief for the hardworking taxpayers and invest in your priorities at the same time."
WEDC-supported projects expected to create, retain nearly 30,000 jobs across Wisconsin
Governor Walker and First Lady Tonette Walker Wish the People of Wisconsin a Merry Christmas and Happy HolidaysDec 25th, 2017 by Gov. Scott Walker
"We wish you all a Merry Christmas, and may you all be blessed with joy in the year ahead."
"We want to make sure Santa has everything he needs, including current weather reports, food and water for the reindeer and extra hot cocoa, candy canes and cookies."
Governor Walker Highlights Wisconsin’s Economic Growth at La Crosse Area Development Corporation’s Annual MeetingDec 21st, 2017 by Gov. Scott Walker
"We’ve created over 42,000 private-sector jobs in the last year alone..."