Ky General Assembly helped Kentucky get through pandemic to be stronger in future

When we close the books on the COVID-19 pandemic, the chapter on Kentucky’s unemployment insurance will reflect what is without a doubt the greatest governmental failure in generations. Almost overnight, thousands of Kentuckians found themselves depending on state government – many for the first time in their lives. Yet, it quickly became clear that a system designed to meet the needs of a growing economy with record-low unemployment could not keep up with the needs of a massive economic shutdown and expansion of eligibility. Unfortunately, it became equally evident that the administration would not retool to keep up with the demand.

Legislators do not have the authority to oversee the day-to-day administration of unemployment, but we do have the power to enact laws. During the 2021 session, we used that power to make the program more effective and efficient at serving both the employers who pay into it and the employees who depend on it. Legislators passed tax relief for struggling businesses, waived repayment of benefits mistakenly paid because of the administration’s actions, and expanded access to services across the state.

Among the bills we passed is HB 413, which provides immediate relief by preventing unemployment insurance tax increases as a result of the pandemic. Employers faced a tax increase of $100 per employee this year, a cost that threatened to cripple their ability to hire and maintain their workforce. HB 413 also requires benefits triggered by a state of emergency be paid from the pooled account rather than directly from an employer’s account.

We also attached provisions to SB 146 to require regional public employment offices to open when an area’s unemployment rate is above 5 percent for the preceding six-month period. Common sense dictates that when the demand is high, special steps must be taken to ensure access to services. As a result of this push, unemployment offices opened to in-person appointments throughout our state on April 15.

The legislature also approved SB 7, a measure sponsored by Sen. David Givens that prevents the claw back of benefits by waiving repayment of those paid in error during the pandemic. his bill is similar to HB 468, which would have provided permanent procedures to determine if repayment could be waived when a recipient receives unemployment benefits they did not qualify for or were paid the incorrect amount. Sadly, Kentucky is one of ten states that does not have a statutory process to handle unemployment overpayment.

The legislature also included a requirement in the HB 192, the executive branch budget, that the Governor’s Administration add 90 positions to the unemployment insurance office and allocated an additional $10.4 million for technology upgrades to the outdated unemployment insurance system. Also, in HB 382, we appropriated $575 million to repay the funds borrowed from the federal government for the unemployment insurance fund.

Lawmakers are already preparing for the 2022 Regular Session and restoring our economy remains at the top of our priority list. Until then, Kentucky must address the growing labor shortage. We must fully reopen our state, but it is unlikely Kentucky will be able to do so unless its workforce goes back to work. We call upon the administration to follow in the steps of Tennessee and Florida and end the additional federal unemployment benefits available through Pandemic Unemployment Assistance.

Prior to the pandemic, Kentucky’s workforce participation rate was among the lowest in the nation – which means that too many people who could be working were not. Lack of child care, transportation, or fear of losing benefits keep too many out of work. However, helping get these folks into jobs and onto career paths remains a priority.

Rep. Russell Webber serves as Chair of the House Economic Development Committee and represents a portion of Bullitt County. Rep. Scott Sharp represents the state’s 100th House District in Boyd County. Rep. Josh Branscum serves the 83rd House District.