TRENTON — Gov. Jon S. Corzine Friday, March 27 received good news from U.S. Labor Secretary Hilda L. Solis that New Jersey is the first state be certified and will be the first to receive unemployment insurance (UI) modernization incentive funds totaling $207 million.
“During these difficult economic times, New Jersey has been committed to helping our unemployed citizens get back on their feet again,” Corzine said in a release. Because of the state’s progressive and innovative UI program, and making the right decisions at the right time, New Jersey is the first state to qualify for its entire UI modernization incentive funding.”
Secretary Solis praised the Governor for New Jersey’s modernization efforts, saying that “New Jersey’s UI program has been updated to better meet the needs of the 21st century labor force.”
“We are meeting the terms of the modernization that I think is reflective of our underlying economy,” the Governor responded.
“I’m pleased that we’re getting this assistance because this helps us in another way. We have an automatic trigger that moves up our unemployment insurance taxes that has been complicated by previous administration’s raids on our Unemployment Trust Fund to balance budgets. We would have been thrown in a position where we would have had almost $900 million of additional taxes. Because of this money and from funds from New Jersey’s General Fund, we have been able to hold that down to under $350 million. So, we’re benefiting not only because of the reforms that USDOL has encouraged, but also from the benefit that is providing to keep taxes down in a time of rising unemployment.”
The New Jersey Department of Labor can use the funds to pay unemployment benefits or, if appropriated by the legislature, for administering its unemployment insurance program or delivering employment services.
Corzine told Solis, “We’re pleased with all of the support we’re getting from the US Department of Labor and it’s great to have someone who wants to stand with working families and folks to make sure that we have these transitions, particularly during a difficult time like we have now.”
The Recovery Act made a total of $7 billion available in UI modernization incentive payments to states that include certain eligibility provisions in their UI programs. Each state can qualify for a share of those funds by showing that its law includes those provisions. New Jersey’s approved application will be posted at the department’s Employment and Training Administration Web site at http://www.doleta.gov/recovery .
