Ohio Pays Off 1.5 Billion Unemployment Compensation Debt

This week Governor DeWine signed House Bill 168 into law, a bill which directs nearly one-third of the money Ohio is receiving from the American Rescue Plan to pay off the state's $1.5 billion unemployment compensation debt.

Pat Tiberi, Ohio Business Roundtable President and CEO, was on hand to provide remarks on the signing of the important piece of legislation.

"The burden that the Governor is lifting off the shoulders of employers is a huge help to businesses who are trying to keep their doors open," said Pat Tiberi. "It is not a bill that will get big headlines, but this is meaningful to employers small, medium and large all across this state."

PT.PNG

Even prior to the pandemic, Ohio had accumulated a debt for the unemployment system. That was exacerbated by the drastic increase in claims due to COVID-19. 

In September Ohio would need to start paying that debt back with interest, a premium increase that would have been passed on to businesses. With this in mind, OBRT joined with Ohio's other major business associations to encourage the DeWine Administration to use the sizeable amount of one-time money from the American Rescue Plan to pay down the debt.

Not only is this a win for businesses who will not have to incur this cost, it is a win for the entire state that we are using these federal funds judiciously to put the Buckeye State in a better economic position.

Alexandra Denney