Ohio, like Texas and California, will begin borrowing money from the federal government again to cover rising unemployment compensation costs. Ohio is opening a $3.1 billion line of credit with the federal government to keep unemployment checks being dispersed to 1.3 million Ohioans who are unemployed. In 2009, Ohio borrowed $3.39 billion from the federal government with employers paying back the bulk of that debt over several years.
According to the Ohio Department of Jobs and Family Services, more than $2 billion in Pandemic Unemployment Assistance Program benefits have gone to 250,000 Ohioans and the state has issued more than $4.1 billion in traditional unemployment compensation benefits to nearly 700,000 Ohioans.
GCP has testified before the Ohio General Assembly and long argued Ohio’s broken unemployment compensation system is in need of reform. Elected leaders must enact long-term solutions that lead Ohio’s unemployment fund toward solvency to avoid repeating mistakes of the past that can devastate small businesses that have already been hit hard by the coronavirus pandemic.
Click here to read GCP’s September 2019 opinion piece that was co-authored by GCP Board Member and Founder and President of BIG-HR Cheryl Perez and GCP CEP and President Joe Roman on the need for reform of Ohio’s unemployment system.
To learn more about GCP’s commitment to reforming our state’s unemployment system, view the GCP Public Policy Agenda.