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CONCURRENT RESOLUTION
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WHEREAS, Over the past year, more than 2 million Texans have |
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applied for unemployment compensation benefits as the COVID-19 |
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pandemic caused unprecedented displacement, layoffs, and |
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furloughs; and |
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WHEREAS, The Unemployment Compensation program was designed |
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to help jobless Americans during economic downturns; administered |
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jointly by the state and federal governments, the program is funded |
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through reserve and surplus funds, which are financed through |
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payroll taxes under the Federal Unemployment Tax Act and the State |
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Unemployment Tax Acts; and |
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WHEREAS, In 2020, Texas depleted its unemployment insurance |
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trust fund to below the minimum level required to maintain |
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solvency; in order to avoid raising unemployment insurance taxes on |
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businesses, Texas must borrow funds from the federal Unemployment |
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Trust Fund; as of March 2, 2021, the State of Texas' outstanding |
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loan balance stands at $6.5 billion; and |
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WHEREAS, Fortunately, the Families First Coronavirus |
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Response Act provided states a temporary waiver of interest |
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payments and suspended the accrual of interest on federal advances |
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to states; those provisions were extended by the American Rescue |
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Plan Act, but these relief measures will expire in September 2021; |
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and |
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WHEREAS, Without further assistance from the federal |
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government, states such as Texas will be forced to replenish their |
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unemployment insurance trusts by raising business taxes, which |
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would inhibit economic recovery and harm already struggling |
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businesses and workers; now, therefore, be it |
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RESOLVED, That the 87th Legislature of the State of Texas |
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hereby respectfully urge the Congress of the United States to |
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provide financial assistance to the states' unemployment |
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compensation programs; and, be it further |
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RESOLVED, That the Texas secretary of state forward official |
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copies of this resolution to the president of the United States, to |
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the president of the Senate and the speaker of the House of |
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Representatives of the United States Congress, and to all members |
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of the Texas delegation to Congress with the request that this |
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resolution be entered in the Congressional record as a memorial to |
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the Congress of the United States of America. |