Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - February 7, 2000
Contact:  Governor's Communications Office, 360-902-4136

Locke applauds passage of bill to cut UI taxes and train workers

OLYMPIA — Gov. Gary Locke today signed into law a strongly bipartisan measure to provide millions of dollars to help laid-off workers train for new jobs and to slash unemployment insurance taxes paid by Washington business.

"This is an important piece of our strategy to help dislocated workers transition into high-skill jobs in our high-tech economy," the governor said. "At the same time, this bill affords employers a significant tax cut. Both are good for the economy as a whole."

Locke signed House Bill 3077 after lengthy negotiations this year and last among business and labor groups, Democrats and Republicans from both legislative chambers and the Locke Administration.

"We all worked together on this one, and you can see the result: a very good piece of economic policy that benefits real people," Locke said.

Effective immediately, the new law:

Provides $140 million over six years in additional training benefits to laid-off timber, fish, aerospace and other workers who are enrolled in retraining programs for high-demand fields. Aerospace, timber and fish workers will qualify for up to 74 weeks of benefits until June 30, 2002 and for up to 52 weeks through June 30, 2005.

Other dislocated workers will qualify for up to 52 weeks throughout the same six-year period. Normally, laid-off workers are eligible for up to 30 weeks of benefits.

Cancels a 23 percent increase in the Unemployment Insurance tax due in April.

Cuts the unemployment tax for most Washington employers, saving them a total of $576 million over the next six years. The legislation will also make UI taxes less volatile from year to year through changes in the calculation in the taxable wage base.

The Washington State Department of Employment Security estimates that 20,000 dislocated workers will benefit from extended benefits that help them afford retraining programs.

Locke noted that the Unemployment Insurance Trust Fund, which now stands at $1.7 billion, is in good shape, assuring enough funding to cover unemployment insurance claims during a recession.

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