- Background
- Policy Principles:
- ACWA
acknowledges that unemployment insurance benefits are low
and not adequate given the cost of living in California. However,
increases in benefits without systemic reforms continually
jeopardize the trust fund’s solvency. The fund’s
solvency must be stabilized prior to any additional tax or
benefit increases.
- Because
of the structural deficit created through past legislation
granting increased benefits, the trust fund’s solvency
remains at issue through 2010. Senator Alarcon introduced SB 1191 in 2004 to address the insolvency crisis, but it failed to pass through the California State Legislature. It is expected this issue will again surface in 2005.
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