Rep. Schaibley: Early unemployment loan payoff to save Hoosier businesses $327M

Posted by: Courtney Bearsch  | Friday, October 16, 2015

STATEHOUSE (Oct. 16, 2015) – State Rep. Donna Schaibley (R-Carmel) announced today that Indiana will pay off its federal unemployment loan early which will lead 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 November 10 deadline. Earlier this year, Schaibley supported the proposal to add the early payoff option to the State’s budget. 

“By managing our finances responsibly, Indiana is able to repay this loan early, saving Hoosier businesses over $300 million in federal unemployment tax penalties that they would have been required to pay,” Schaibley said. “Our job creators can now repurpose that money and circulate it back into the economy.”

Schaibley explained that the repayment option will be implemented through a loan from the state general fund to the Unemployment Insurance Trust Fund, at no additional cost to taxpayers. She expects the general fund to be repaid in full by the first half of 2016 from state unemployment insurance tax revenues that are remitted by employers.

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Rep. Schaibley (R-Carmel) represents portions of Boone and Hamilton counties.