Tim Barfield, head of the state workforce commission, says he continues to negotiate with federal officials about ways the state could take $98 million in federal stimulus money to expand unemployment benefits without causing a tax hike on business.
Gov. Bobby Jindal is refusing the unemployment money because he says he doesn’t want to take dollars that could force businesses to pay more taxes. Companies’ unemployment tax rates are tied to their unemployment claims history. Jindal says if benefits are expanded, businesses’ claims history could increase, driving up their tax rates.
Barfield told a legislative committee today he’s asking federal officials to consider a waiver that would keep the stimulus money from changing the unemployment claims history of employers. Louisiana received similar waivers after hurricanes Katrina and Gustav.
