North Carolina General Assembly Update

The North Carolina General Assembly was back in action Monday, February 4 and Western North Carolina legislatures spent the day making the long commute to get to Jones St.. To this point, the Chamber is very thankful for all the hours and miles traveled by our WNC legislatures to represent the Western part of the state in Raleigh. The Asheville Chamber wishes you all safe travels for this long session.

BACK TO THE ACTION…

The House and Senate convened at 7 p.m. Monday night to kick off this week’s work. Both chambers heard and voted on contentious pieces of legislation. The House took up a vote on H.B. 4 (Unemployment Insurance Bill) and tentatively passed the legislation. The vote did see some party crossover with four Democrats voting with Republicans to pass the legislation (Representatives Brisson, Farmer-Butterfield, Goodman, and Tine) and three Republicans voting against the legislation with the Democrat camp (Representatives Bumgardner, Hastings, and Wells).

The House will have their final reading and vote on H.B. 4 Tues. Feb 5.

The Senate was also in the building and took up a vote on S.B. 4, which would block the expansion of Medicaid under provision of the Affordable Care Act. The vote tentatively passed on party lines despite the fact that Republican Governor McCrory urged the Senate to slow down the vote. Governor McCrory would like additional study on the fiscal ramifications of the bill before action is taken at the legislature.

The Senate will also take up the final reading and vote on S.B. 4 Tues. Feb 5.

The Asheville Chamber is working to represent the voice of Western North Carolina business in Raleigh. If you have any questions or concerns please contact us at jjoyce@ashevillechamber.org.


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Unemployment Insurance System Failing NC Biz: We Need Your Help!

North Carolina currently has over $3 billion in unemployment insurance debt, which is owed to the federal government. This debt and the increasing tax implications will have a major impact on NC business and their bottom line. The UI debt is the most immediate challenge to our state’s job creators. 

 

Nov. 10 Federal Unemployment Insurance Debt Deadline > UI Taxes Going Up
On November 10, North Carolina faces the deadline to repay the federal UI loan in order to avoid additional tax penalties. As in 2011, employers will face an additional FUTA tax of .3 percent, or about $21 per employee. That means business will be hit with a tax increase on every job from 63 dollars to 84 dollars per employee! This recent Triangle Business Journal article takes a look at the impact this is having on businesses and different proposals to address the issue, including the NC Chamber UI Study.   Additionally, the Times-News in Hendersonville looked at these tax increases and reports that local businesses say that increases of this magnitude could disable the state’s economy and restrict hiring. The NC Chamber’s Vice President of Government Affairs Gary Salamido discussed the importance of a robust reemployment system in looking at a comprehensive solution. Read the Times-News article here.

 

ACTION ITEM – We need your support and the help of employers statewide to make significant change for North Carolina business. Join the Reemployment Coalition and lend your organization’s name to this support list if you want to stop UI waste and abuse, and see North Carolina develop a comprehensive solution to our state’s UI crisis.  Contact NC Chamber Director of Governmental Affairs Jake Cashion, at jcashion@ncchamber.net or (919) 836-1411, by Friday, November 16.

Thank you for your support; it is critical to shaping a business-driven solution!