Republican State Senators George Borrello, Dean Murray, and Pam Helming are pressing Governor Kathy Hochul to allocate state funds to eliminate New York’s $6 billion Unemployment Insurance (UI) debt. They argue that addressing this financial burden, accrued during the COVID-19 pandemic, is critical for alleviating inflation and supporting the state’s small business community.
The senators contend that the debt has led to increased unemployment insurance premiums for employers, hampering recovery efforts for businesses already facing economic pressures such as inflation. They noted that New York is one of the few states that did not use federal COVID-19 aid to address its UI debt, instead opting for an Unemployment Insurance Assessment Surcharge, which shifted costs to employers.
The lawmakers emphasized that eliminating the debt would not only ease the financial strain on businesses but also benefit consumers by lowering the cost of goods and services. They framed the issue as a necessary step to foster economic growth and reduce the cost of doing business in New York.
The senators have urged swift action from the governor, warning that delays could further harm the state’s economy and impede small businesses’ ability to recover and grow. Their appeal reflects a broader call for policy measures to support the business sector and mitigate inflationary pressures statewide.
