MacIver News Service | October 1, 2010
[Madison, Wisc…] State Representative Mark Honadel (R—South Milwaukee) is sounding the alarm, warning that that the state’s unemployment reserve indebtedness could lead to a new tax hike on Wisconsin employers.“This is one of the most under-reported stories about Wisconsin’s dire fiscal condition,” said Honadel. “Anti-employer policies in Madison lead to high unemployment and leave a legacy where we have to pay for the sins of the past.”
Wisconsin’s unemployment reserve indebtedness is among the nation’s worst. According to data provided by the U.S. Department of Labor:
- Despite an infusion of $134 million in Stimulus funds, Wisconsin’s Unemployment Reserve Fund ended 2009 with a deficit of nearly one billion dollars
- Wisconsin has the 11th largest outstanding UI loan balance in the nation, up from 12th last quarter. Worse, the loan balance per covered employee is now the 5th largest in the country, up from 6th last quarter
- As a percentage of total wages, Wisconsin’s loan is the fourth largest in the nation, up from fifth last quarter
“This level of indebtedness to the federal government is outrageous,” said Honadel. “I will work diligently to find ways to satisfy this loan without passing on a hefty new tax on employers here who have survived this recession.”
Unemployment Reserve Fund Balance and Outstanding Loans (Millions)
Source: Nonpartisan Legislative Fiscal Bureau
| Year | Total Receipts | Benefit Payments | Fund Balance | Outstanding Debt |
| 1982 | 223 | 688 | -416 | 413 |
| 1983 | 298 | 519 | -637 | 628 |
| 1984 | 565 | 347 | –419 | 534 |
| 1985 | 573 | 406 | –252 | 328 |
| 1986 | 648 | 352 | 43 | – |
| 1987 | 658 | 304 | 397 | – |
| 1988 | 615 | 266 | 746 | – |
| 1989 | 588 | 302 | 1,032 | – |
| 1990 | 513 | 341 | 1,203 | – |
| 1991 | 447 | 478 | 1,174 | – |
| 1992 | 448 | 438 | 1,184 | – |
| 1993 | 476 | 394 | 1,266 | – |
| 1994 | 505 | 377 | 1,394 | – |
| 1995 | 520 | 418 | 1,496 | – |
| 1996 | 517 | 471 | 1,542 | – |
| 1997 | 524 | 445 | 1,621 | – |
| 1998 | 524 | 452 | 1,693 | – |
| 1999 | 544 | 466 | 1,771 | – |
| 2000 | 559 | 515 | 1,815 | – |
| 2001 | 542 | 791 | 1,566 | – |
| 2002 | 684 | 949 | 1,301 | – |
| 2003 | 562 | 932 | 931 | – |
| 2004 | 644 | 795 | 777 | – |
| 2005 | 729 | 752 | 750 | – |
| 2006 | 723 | 753 | 717 | – |
| 2007 | 686 | 845 | 554 | – |
| 2008 | 656 | 996 | 187 | – |
| 2009 | 769 | 1,874 | –918 | 918 |
| 2010 (thru Aug) | 725 | 975 | -1,168 | 1,139 |