Jobless trust fund premiums could be boosted

Wednesday, Feb. 6, 2002 | 11:09 a.m.

CARSON CITY -- Nevada businesses may have to pay higher premiums next year into an unemployment trust fund because of the sagging economy.

Birgit Baker, director of the state Division of Employment Security, said Wednesday "I expect to raise rates for 2003."

She told the Legislative Interim Finance Committee the agency will pay out more than $306 million this year in jobless benefits. But the premiums from employers will total only about $281 million.

That will leave the fund at $495.5 million on Sept. 30, when a solvency test is made. She said the fund should pass the test for solvency, but rates may still have to be boosted.

The average tax rate for an employer is 1.29 percent of the wage of a worker, a level it has remained at for several years.

Baker told the committee that prior to Sept. 11, the average number of jobless was 20,000 but that has jumped to 43,000. She said earlier the present jobless rate in January is 68 percent higher than a year ago.

Senate Majority Leader Bill Raggio, R-Reno, said lawmakers have received calls from the public about the long telephone wait for those who want to file unemployment claims or those who want information.

He said some are waiting several hours.

Baker said last week, the agency was able to get the wait time down to 10 minutes on three of the five days.

A person now can only file a claim over the telephone.

But Baker said an Internet program is being tested to allow individuals to file their continuous claim and to determine the status of a person's check. Eventually, she said it will permit new claims to be submitted over the Internet.

The system is being tested now.

Sen. Joe Neal, D-Las Vegas, asked how a person who doesn't have a computer or an Internet connection will be able to access the new system. Baker said there are computers at the various job link offices for individuals to use.