NEWS, SPORTS, COMMENTARY, POLITICS for Gloucester City and the Surrounding Areas of South Jersey and Philadelphia

Eugene McCaffrey, Sr., First Mayor of Deptford, Served in Gov. Kean's Cabinet, Former PACO President, Friend of Pres. Geo H. Bush
Some Thoughts on the Highest Taxes in the Nation

Letters: The UI Fund’s Pending Insolvency

April 26, 2010

Honorable Stephen Sweeney 6a00d8341bf7d953ef011570924c58970b-200wi

Senate President

New Jersey Senate

State House

Trenton, New Jersey 08625

Dear President Sweeney:

As you are aware, the state Unemployment Insurance Fund is in severe financial jeopardy.  Under your and Senator Kean’s leadership the Legislature has taken the first step to address funding the system in the future by adding a constitutional amendment, SCR-60, to the ballot that will prohibit future diversions from the fund.

Sadly, past diversions have depleted the fund forcing the state to borrow from the federal government. To date we have borrowed more than $1.4 billion to cover our obligations.

The UI Fund’s pending insolvency has tripped a trigger that will automatically initiate a $1 billion tax increase. This tax increase, which will begin July 1, 2010, will almost certainly stop the emerging recovery dead in its tracks.

There is still time to modify the UI fund to mitigate the impact on the very fragile economy in the state. Due to the time constraints involved, I respectfully ask that you post my bill, S-1854 at the earliest possible moment.  New Jersey’s economy must not be forced to face more uncertainty.

                                                            Respectfully yours,

                                                            Joe Pennacchio