INDIANAPOLIS (Oct. 16, 2015) – State Rep. Casey Cox (R-Fort Wayne) today announced Indiana will pay off its federal unemployment loan early leading to significant savings for Hoosier businesses.
The State Budget Committee voted today to authorize a $250 million repayment of a federal unemployment loan prior to the Nov. 10 deadline. Cox joined House Republicans earlier this year in adding the early payoff option to the state’s budget.
“By repaying this loan early, we are eliminating $327 million in federal unemployment tax penalties for Indiana businesses,” Cox said. “This comes at no cost to taxpayers and provides employers flexibility in how they utilize funds originally needed to pay these tax penalties.”
Cox said the repayment option is available thanks to a loan from the state general fund to the Unemployment Insurance Trust Fund. He expects the general fund to be repaid in full by the first half of 2016 via state unemployment insurance tax revenues that are remitted by employers.
During the recession, Indiana’s Unemployment Insurance Trust Fund could no longer meet demand resulting in a $2 billion debt to the federal government. House Republicans took action in 2011 to put the fund on a path to solvency.
Rep. Casey Cox (R-Fort Wayne) represents a portion of Allen County.