Indiana House repeals unemployment premium increase

INDIANAPOLIS | The Indiana House voted Tuesday to repeal a scheduled increase in the unemployment insurance premiums paid by Hoosier businesses.

The vote to repeal the premium hike comes one year after House Democrats agreed to increase the rates to begin replenishing Indiana's broke unemployment insurance fund. The state has borrowed nearly $2 billion from the federal government to continue paying benefits.

"That bill that we passed last year was a huge tax increase on businesses," said state Rep. Don Lehe, R-Brookston. "It would be of great benefit if we could start over -- come in again and start over with the unemployment insurance legislation and do it the right way."

The Republican-controlled Indiana Senate approved Senate Bill 23 in January, which would have delayed the unemployment premium increase from taking effect for one year.

The proposal to amend that legislation and repeal the increase altogether was approved 90-5 by the Democratic-controlled House.

House Speaker Patrick Bauer, D-South Bend, said he was happy that Republicans got on board.

"It was really to get the focus on having a bipartisan solution," Bauer said. "We just said maybe we ought to step back and have you join us, so we can walk this mile together."

State Rep. Brian Bosma, R-Indianapolis, the Republican House leader, has called the scheduled premium increase the largest-ever tax increase on Hoosier businesses.

Senate Bill 23 is expected to get a final vote in the House this week. The Senate must also agree to the House's changes before the legislation can go to the governor.