Unemployment tax may not increase

Tuesday, Oct. 1, 2002 | 11:03 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- The state's unemployment trust fund has a $477 million balance and on Monday it met its solvency test.

Employers pay a premium for each worker into the fund and it is measured regularly to see if there is enough money to meet future unemployment payouts to the jobless. Based on past experience, Monday's test indicates the premium may remain the same in 2003.

Birgit Baker, administrator of the state Division of Employment Security, said the projections made last year showed the fund must have at least $389.1 million as of Sept. 30.

Though there was a higher than expected unemployment rate and payout during the year, she said the fund was augmented by $68 million in federal funds.

The federal government also picked up all of the costs of extended unemployment benefits.

The advisory council to the state agency will meet Oct. 15 to look at the economic forecasts and decide whether to retain or increase the present premium rate charged employers. The average rate is now 1.29 percent on a worker's salary. And .05 percent is added for a skills training program for the jobless.