INDIANAPOLIS (Oct. 19, 2015) – State Rep. Timothy Wesco (R-Osceola) recently announced Indiana will pay off its federal unemployment loan early leading to significant savings for Hoosier businesses.
The State Budget Committee voted to authorize a $250 million repayment of a federal unemployment loan prior to the Nov. 10 deadline. Wesco joined House Republicans earlier this year in adding the early repayment option to the state’s budget.
“By managing our finances responsibly, Indiana is able to repay the federal loan early, saving Hoosier businesses $327 million in federal unemployment tax penalties,” Wesco said.
Wesco 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. Wesco (R-Osceola) represents portions of Elkhart and St. Joseph counties.