In 2020, New York’s private sector lost more than 1.7 million jobs, which drove unemployment to from 4.4% to a devastating 16.2%. The unemployment insurance system was overwhelmed and quickly exhausted the funds from the Unemployment Trust Fund that New York held to pay the claims. The state borrowed $11 billion from the federal government to continue paying claims, but retained an outstanding balance for years afterward.
One of only two states with a balance, New York’s small businesses were required to pay substantially higher unemployment insurance taxes, some employer’s unemployment insurance costs rising by thousands each year. Since New York accrued this debt and required the businesses to close during the pandemic, I have argued it is the state’s responsibility to take ownership of this repayment rather than force business owners to shoulder the burden, so I was gratified to see the repayment of the debt–in full–included in this year’s final budget. This is a major win for our small businesses.
Ultimately, the state has a responsibility to take ownership of its decisions–and its debts–and I was proud to strongly support protecting small business owners across New York. These businesses are the lifeblood of our communities. When we support their success, we support the success of all of New York.
