State lawmakers and other experts have been discussing for years the best way to shore up the fund that pays Ohioans unemployment benefits, after the fund went broke in the last recession. A Republican-backed bill would cut the maximum amount of unemployment benefits a recipient receives by 23%. But the sponsor said that’s necessary to build up Ohio’s underfunded unemployment compensation fund and provide relief to struggling business owners.
House Bill 376 would lower the maximum unemployment benefits a recipient receives from the 26 weeks to 20 weeks. Rep. Michelle Teska (R-Clearcreek Twp.) sponsored the bill. She said data from the U.S. Department of Labor shows Ohio’s unemployment trust fund would be insolvent within six months if the state enters a recession.
“This bill will help stabilize the fund and help limit the need for future tax increases on employers," Teska said. “This proposal is a prudent, balanced reform that aims to protect the solvency of Ohio’s unemployment insurance trust fund, encourage faster re-employment, and better align our benefit system with current market conditions.”
Teska said the change would save businesses more than $158 million. She said that would help Ohio businesses that are facing staffing shortages and inflation.
Advocates for working Ohioans disagree
Teska's bill was introduced in June, but was only referred to a committee last month, so opponents haven't had a chance to weigh in. But the bill is expected to be fought by many Democrats and advocates for low-income and unemployed Ohio workers.
Policy Matters Ohio Work and Wages fellow Bailey Sandin said reducing the weeks of unemployment would make Ohio an outlier.
"Thirty-seven states, including all of Ohio’s neighbors except Kentucky, provide 26 weeks of benefits,” Sandin said. “Why should Ohio cut weeks when the majority of states throughout the country have already determined that 26 weeks are necessary?”
Sandin said unemployed Ohioans need time to find another job that uses their skill set.
“We don’t want to see millwrights working at McDonald's,” Sandin said. “We need to make sure that individuals who find themselves unemployed due to no fault of their own have an on-ramp and the wiggle room necessary to get into a career, or re-enter a career essentially, that matches their skill set.”
And Sandin also said this bill won't bring solvency to the unemployment trust fund.
The state borrowed $1.5 billion from the federal government to pay jobless benefits when the unemployment compensation fund went broke during the recession in 2008. Ohio paid back that loan in 2021 with federal COVID relief funds.
House Bill 376 has 12 Republican co-sponsors and has had one hearing before the House Public Insurance and Pensions Committee.
