As legislators contemplate what will be on their agenda when the General Assembly returns after the November election, a coalition of nearly 500 state and local nonprofit organizations -- Advocates for Ohio's Future -- is urging action to update and recession-proof the state's unemployment compensation system.

"Ohio’s unemployment system has been underfunded for almost 20 years and will not get through the next national recession without once again going broke. Legislators must fund a long-term and balanced approach to solvency that protects all of Ohio’s workers today and in the future," the coalition said in a Tuesday release.

Explaining that unemployment compensation (UC), created as part of the Social Security Act of 1935, supports working people who lose a job through no fault of their own, the coalition went on to say, that "just 19 percent of Ohio's jobless workers are receiving unemployment compensation. …

"We urge legislators to strengthen and broaden the UC program. Ohio’s work environment has changed, with a shift toward low-wage and temporary jobs, yet the unemployment compensation system fails to offer enough protection to workers in the low-wage labor market.Many low-wage jobs offer so few hours and wages so low that workers fail to meet the eligibility criteria of the state’s stringent system.

"Employers pay less into the Ohio system than the national average and have for nearly 20 years.This was the main factor that caused the state to borrow billions of dollars from the federal government in the last recession and without changes, it will have to again in the next recession. Before that happens, Ohio’s lawmakers must create a system of sustainable financing and modernize program rules to reflect the changed nature of Ohio’s economy."

The coalition's recommendations to stabilize and modernize Ohio’s unemployment system to protect and support families from swings in the economy include the following:

- Modernize and modify UC eligibility standards to ensure that minimum wage workers employed 20 hours a week all year long are eligible for benefits if they lose their job through no fault of their own.

- Implement a modest employee premium contribution to the unemployment compensation fund to help make the UC system solvent, avoid cuts to benefits, and allow the state to expand benefits to low-wage workers.

- Adjust the funding formula to ensure solvency of the UC Trust Fund is achieved well before 2030.

- Increase the taxable wage base to the national average of $13,899, and index it annually to reflect wage levels or prices. Adjusting and indexing the UC financing system will make the system more solvent and benefits Ohio employers and unemployed Ohioans.

- Maintain the current 26 weeks of UC benefits. Ohio has been paying up to 26 weeks of benefits for almost 70 years. This year, only nine states offer less than a maximum of 26 weeks.

- UC benefits should be adjusted and indexed to inflation annually to ensure that workers who lose their jobs through no fault of their own are able to keep a roof over their heads and feed their families.

- Maintain current law related to issuances for Dependency Class maximum weekly benefits to ensure large families of unemployed Ohioans are not harmed.

- Establish an annual analysis of current and emerging labor market trends and ensure the system addresses emerging needs. "With Ohio’s poverty level still above the national average, we must invest in, not erode, programs that help Ohioans get back on their feet."

"The current status of the unemployment compensation fund did not occur overnight. The best solution must achieve full and solid solvency now and in the future. It must broaden eligibility without diminishing needed aid to those currently eligible."

In the House, Rep. Kirk Schuring (R-Canton) is the chief sponsor of both HB382 and HJR4 which seek to address unemployment comp while in the Senate, Senate President Larry Obhof (R-Medina) said he has asked Sens. Bob Peterson (R-Sabina) and Randy Gardner (R-Bowling Green) to work on the issue. (See The Hannah Report, 9/10/18.)

Back in June, shortly after he was elected speaker for the remainder of the 132nd General Assembly, Speaker of the House Ryan Smith (R-Bidwell) told reporters unemployment comp has been “a thorny issue for a long time.” He went on to say the subject needs to be a priority discussion because a recession could put the state back into debt with the federal government, but he added at the time that they still needed to work things out with interested parties.(See The Hannah Report, 6/19/18.)