Unemployment fund healthy

Well, there's at least one state government endeavor that isn't pleading poverty during the current economic downturn.

With many agencies maintaining they've cut to the bone -- and others arguing that in order to maintain basic services they need more tax revenue -- the state's unemployment trust fund is doing just fine.

The fund is used to pay unemployment benefits to Nevadans who lose their jobs. About 40,000 people are currently receiving checks each week.

Money to keep the account afloat is raised by a tax on 60,000 Nevada employers, which averages 1.33 percent of the first $25,400 each worker earns over the year.

The fund's balance is currently $700 million, reports Mae Worthey of the state Department of Employment, Training and Rehabilitation, enough to provide anticipated benefit checks through the next year.

"It's certainly better than where some other states are," Ms. Worthey said. "We're countercyclical" -- meaning the department collects money to build up the fund in good times to cover the bad times.

True, the fund is expected to drop to about $450 million by the end of next year as projections put Nevada's unemployment rate at an average of 8.6 percent a month in 2009. That would bring the balance $119 million below its target level. But last week, department chief Cindy Jones declined to close that gap by increaing taxes on employers, noting that she didn't want to further burden companies already struggling to weather the ongoing recession.

That's an attitude we hope is prevalent throughout Carson City when the Legislature reconvenes in February with the state budget at the forefront.