Approved March 30, 2022

RESOLUTION OF THE GREATER UTICA CHAMBER OF COMMERCE IN SUPPORT OF THE USE OF FEDERAL FUNDS TO PAY DOWN UNEMPLOYMENT INSURANCE

WHEREAS,  nearly 2 million New Yorkers were receiving unemployment insurance benefits during the height of the Covid panemic;  and

WHEREAS,  the State of New York borrowed $11.9 billion from the federal government to pay these benefits;  and

WHEREAS,  New York still owes the federal government approximately $9 billion and the state’s unemployment insurance fund is currently insolvent; and

WHEREAS,  a $9 billion tax increase would be needed on businesses to pay the remaining debt, the majority of which would fall on small businesses that make up the majority of New York’s private sector; and

WHEREAS,  the cost to employers would amount to approximately $200 per year per employee over the next 7 years to retire this debt; and

WHEREAS,   the State has an opportunity to apply $2 billion in unspent federal funds to pay down the outstanding balance which would help offset the cost to businesses; and

WHEREAS,   32 other states are using unspent federal funds in a similar fashion to retire debt related to their unemployment insurance funds;

NOW THEREFORE BE IT RESOLVED that the Greater Utica Chamber of Commerce supports proposals to include and approve within the State Budget the use $2 billion in unspent federal assistance to repay the federal government a portion of the debt associated with unemployment benefits expended during the Covid pandemic.