West NY News

In Albany, New York, Republican Senators George Borrello, Dean Murray, and Pam Helming have urged Governor Hochul to address the financial challenges facing small businesses in the state. This call comes after the governor's announcement of an "inflation refund" plan.

The senators sent a joint letter requesting that state funds be allocated to pay off approximately $6 billion in Unemployment Insurance (UI) Fund debt owed to the federal government. They argue this move would provide a long-term solution for reducing inflation and consumer costs.

New York State's UI Fund debt accumulated during the COVID-19 pandemic has increased unemployment insurance premiums for small businesses. The senators believe these additional costs are hindering recovery efforts amid ongoing economic pressures.

Senator George Borrello criticized the governor's approach: "Instead of following the commonsense approach of other states and using some of the billions in federal COVID aid to pay down the unemployment debt, the governor unfairly shifted the burden to businesses and employers through the Unemployment Insurance Assessment Surcharge (UIAS). Since the UI deficit stems from the government-mandated shutdown during the pandemic, it is only fair that employers are not left to shoulder these costs."

Senator Dean Murray emphasized how resolving this issue could impact consumer prices: "By eliminating a massive expense for employers and businesses, we are helping them and allowing them to lower the costs of goods and services, which in turn helps consumers. Instead of a one-shot check, this brings long-term relief for everyone."

The legislators also stressed that tackling UI debt shows support for small business communities. Senator Pam Helming stated: “The state must take full financial responsibility for its UI debt to the federal government and end this burden on our small businesses and family farms. If we truly want to help our employers grow and protect local jobs, we must reduce the cost of doing business in New York State. Our economic success depends on it.”

The senators are urging prompt action from Governor Hochul before further economic impacts occur. Their letter is attached.