Recent strains on the state’s unemployment fund that have driven it into insolvency prompted lawmakers in the House Friday to approve a measure intended to provide greater stability for the fund in the future.

House Bill 1288, by Reps. Larry Liston, R-Colorado Springs, and Dan Pabon, D-Denver, changes the way unemployment insurance will be funded. Pabon said employers have been very receptive to the changes.

“Employers in these tough economic times are seeing an increase in their expenses,” said Pabon. “This bill offers predictability for an employer on what they are paying toward the unemployment fund. Business groups told us that was what they needed, and this bill does that.”

The new formula, based on a ratio, would make it easier for employers to anticipate what they will be paying, said Pabon.

The unemployment fund had been solvent just a few years ago. In the last few years however, the fund has veered toward the red-ink side of the ledger with a negative balance of about $530 million.

The state has had to borrow from the federal government to meet its obligations to unemployed Coloradans. The proposal calls for the new formula to take effect after the loans have been paid off.

Liston said that seeking solvency for the fund should be a priority for Colorado.

“Everyone can agree that paying millions of dollars in debt service to the federal government is not a good use of taxpayer money,” said Liston.  “By finding other ways to maintain the fund’s balance, Colorado will lessen its federal debt and lessen the federal government’s hold on our money.”

The measure is now headed to the full Senate for consideration.

You may use part or all of this article in Web or print publications, as well as in radio and TV broadcasts, at no charge and without further permission. Please credit the Colorado News Agency.