STATEHOUSE (Oct. 16, 2015) – State Rep. Peggy Mayfield (R-Martinsville) 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. Mayfield, who serves on the House Ways and Means Committee, joined House Republicans earlier this year in adding the early payoff option to the state’s budget.
“As a strong proponent of fiscal responsibility, I am pleased to see Indiana paying off this federal loan ahead of schedule,” Mayfield said. “This important step brings relief to every Hoosier business and comes at no cost to our hardworking taxpayers.”
Mayfield said the repayment option is available thanks to a loan from the state general fund to the Unemployment Insurance Trust Fund. She 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.
In 2008, due to 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. Mayfield (R-Martinsville) represents portions of Morgan and Monroe counties. She serves as a member of Ways and Means and Insurance committees.