No big boost expected in Nevada jobless insurance

CARSON CITY — No opposition was voiced at a workshop Tuesday to a proposed rate schedule for unemployment insurance that businesses will pay next year to cover jobless claims.

The proposed rates for 2015 will have most businesses paying about the same amount as they did this year.

The state Employment Security Division held the workshop on the regulation for small businesses. But the proposed regulation affects all Nevada employers that are subject to the state unemployment compensation law. Actual rates paid by employers are based on their previous experience with unemployment.

Final action on the regulation is expected on Dec. 2.

The only public testimony came from Carole Vilardo, president of the Nevada Taxpayers Association, who said her members support the proposal. She also spoke on behalf of the Las Vegas Metro Chamber of Commerce in supporting the recommendation.

The average rate paid by businesses would actually increase from 1.95 percent this year to 2 percent next year. But the increase would be offset by a reduction in a separate assessment on businesses that is being used to pay off bonds sold to pay back the federal government for money borrowed to pay jobless benefits during the worst years of the Great Recession.

The two assessments this year total 2.58 percent on average. If the recommendation for next year is adopted, the total rate will average 2.56 percent.

The 2 percent rate would generate about $546 million for the Unemployment Compensation Trust Fund during calendar year 2015. The system has paid out nearly $400 million in regular unemployment benefits to Nevada workers this year.

Contact Capital Bureau reporter Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Find him on Twitter: @seanw801.