Minnesota gets $130 million in fed unemployment insurance reform incentive funding
Gov. Tim Pawlenty, U.S. Secretary of Labor Hilda Solis and others in a conference call today (May 6) announced the Minnesota will receive about $130 million in federal unemployment insurance reform incentive funding — enough money to cover about three weeks of state unemployment payments, Pawlenty indicated.
“This really helps Minnesota in a variety of ways,” said Pawlenty.
Solis congratuated state officials for their efforts in reforming and updating the state’s unemployment insurance.
“You’re right out there on the top,” she said.
Other states are lagging behind, she opined.
Minnesota received the full amount it can get under the federal incentive program, Solis explained.
Pawlenty indicated that the $130 million does not have state general fund implications.
It does help to ensure the solvency of the state’s unemployment trust fund — could reduce longterm costs to employers, said Minnesota Department of Employment and Economic Development Commissioner Dan McElroy.
The state unemployment trust fund could have to borrow federal dollars in 2010 to remain solvent, McElroy indicated.
They will not let the trust fund go broke, he explained.
Sen. Amy Klobuchar joined the governor and Solis on the conference call.
