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Unemployment Compensation Special Assessment
By John Forester(Don't Use) | July 19, 2011
Several SAA members have raised questions regarding the unemployment compensation special assessment notice you all received recently from the Department of Workforce Development (DWD).
Given that school districts pay for unemployment compensation claims on a pay-as-you-go reimbursement basis, SAA members questioned whether school districts should be on the hook for this interest payment. Upon investigation, we discovered that DWD is proceeding according to the letter of the statute as it was adopted in 1983. Inequitable as it seems, it appears that we are indeed on the hook for this payment. Upon hearing the news, one SAA member responded, “So, school districts are subsidizing private sector employers.” It appears so.
The SAA will continue to explore policy changes to remove or soften the impact of this inequity in the system.
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