Governor Newsom and the Legislature have backtracked on assistance to California employers to deal with the Unemployment Insurance (UI) deficit, says Tom Sheehy, principal and founder of the Sheehy Strategy Group.
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Tom Sheehy, Principal and Founder of the Sheehy Strategy Group, recently sat down with GovReport’s Christina Gagnier to discuss California’s massive unemployment insurance (UI) debt and possible solutions.
Read MoreThe California State Legislature has rejected efforts to pay down even the smallest amount of its unemployment insurance debt. California owes billions and businesses could soon be on the hook.
Read MoreDid you know CA borrowed over $21 billion from the fed government to backfill the unemployment insurance fund during the pandemic? If those funds are not repaid, every employer in the state will face automatic tax increases.
Read MoreAt the start of the pandemic, California’s unemployment insurance fund did its job, softening the blow of job losses suffered by millions of workers—but COVID completely wiped the fund out. In order to provide unemployment benefits after the UI fund was emptied, California borrowed over $21 billion from the federal government. Now, California is faced with a dilemma: pay back the debt or steeply raise taxes on employers.
Read MoreCalifornia continues to shoot itself in the foot when it comes to business regulations. CFRA expansion will put small firms out of business and ship more jobs out of state. Find out why.
Read MoreLast year California's governor and legislators codified a complete suspension of net operating loss (NOL) tax deductions for three years—a move meant to save the state general fund $4.5 billion at a great cost to businesses. But now the Legislative Analyst’s Office and the Department of Finance are projecting a $15 billion budget surplus, rendering the NOL freeze completely unnecessary.
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