Republican state legislators proposed reforms to the state’s unemployment insurance policies in an April 1 letter to the state’s Unemployment Insurance Advisory Council, specifically aiming to eliminate overpayments and redefine which individuals qualify for the insurance.
The recommendations, which have the formal support of 27 state legislators, were made to prepare the state for any future recessions, according to a Wiseye interview with state Rep. Dan Knodl, R-Germantown, and state Sen. Frank Lasee, R-De Pere, who were the first legislators to sign the letter.
The two legislators said a primary area they hope to address in the current unemployment insurance system is the people that are eligible to receive unemployment insurance. They specifically cited examples of people who were fired for poor performance or current inmates who were still being paid through the unemployment insurance fund as a place to start.
The legislators said the extra payments to people they say should not qualify further hurts Wisconsin businesses, which are responsible for paying money into the insurance fund. Knodl added state businesses are already struggling while the country continues to come out of the recession.
“[Unemployment payments] have hit the businesses at the worst of times,” Knodl said. “If we right the ship, businesses will be a lot more confident to stay in Wisconsin and grow.”
The UIAC will likely discuss the legislator’s proposals when it meets April 18. Knodl and Lasee said they were unsure of the progress the council will make, but they said they remain optimistic the reforms will eventually move to the state legislature.
