CARES committee approves millions for unemployment trust fund

News

Without approval from the committee an automatic stabilization tax increase would be triggered, which means increasing the tax that employers are paying per employee.

FAYETTEVILLE, Ark.(KNWA/KFTA) — The CARES Act Committee approves millions of dollars for the state’s unemployment trust fund.

In Friday’s CARES Act Committee meeting, Secretary Mike Preston with the Department of Commerce asked the group for $165 million for the state’s unemployment trust fund.

Without approval from the committee an automatic stabilization tax increase would be triggered, which means increasing the tax that employers are paying per employee.

It would be a point one percent tax increase per employee.

Which around the state, would cost employers around 10 million dollars per year.

Secretary Preston said, “This keeps us at the rate we’ve been at for the past year.”

Only two people were against the proposal, including Senator Will Bond, who said the money should be spent elsewhere.

“I think it’s important that we look at teachers, and schools… whether that’s more school nurses or health and safety payments to teachers,” he said.

But in the end, a majority of the committee approved the $165 million to build the trust fund back up.

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Latest Video

Local News Video

FOX24 Video

DON'T MISS

More Don't Miss

Trending Stories

get the app

News App

Weather App

Mega Millions & Powerball Numbers