State Rep. Michael Sheehy (D-Oregon) today applauded the recent announcement that the state of Ohio has paid the remaining $271 million of its debt to the federal government for an unemployment compensation loan.
“This move will provide great relief to employers in Ohio who have been paying higher taxes as a result of the state’s debt,” said Sheehy. “Paying off the debt earlier than originally expected is projected to save employers a net estimated $351 million, an amount that can now be used toward supporting hardworking families and expanding local businesses.”
Ohio borrowed at most $3.4 billion from the federal government after the state’s unemployment compensation fund became insolvent during the Great Recession. This debt required a series of offset reduction measures beginning in 2011, including increased taxes for employers that continued to rise until the debt was repaid. Ohio lawmakers authorized the final debt repayment as part of House Bill 390 this past May.