Senate Republican Leader Tom Kean’s bill calling for a constitutional amendment to end raids on the state unemployment insurance fund advanced today in the Assembly Labor Committee. The bill calls for a statewide referendum on whether the state should be able to balance its budget or finance unrelated spending by raiding funds collected solely by taxes taken from employers or employees’ paychecks.
Past raids have forced the state to borrow more than $1 billion to pay unemployment claims during this recession,” Senator Kean said. “Continuing deficits caused by raids on the unemployment fund will lead either to more borrowing or calls for job-killing tax increases on employers. Senate Concurrent Resolution 60 should be sent to voters as soon as possible.”