Martinez Signs Unemployment Fund Revision

Apr 3, 2013

Credit Office of the Governor

Gov. Susana Martinez has signed legislation into law to overhaul how New Mexico charges businesses for the state's unemployment insurance program.

Martinez signed the measure Wednesday in Albuquerque, saying it will provide more fairness for business owners.

Greater Albuquerque Chamber of Commerce CEO Terri Cole said the legislation will ensure the solvency of the unemployment program, avoid arbitrary tax increases and eliminate political interference in determining how much businesses must pay.

The unemployment fund's finances have declined in recent years after the Legislature cut tax rates paid by businesses and then jobless benefit claims rose when the economy soured.

The legislation establishes a new system starting in 2015 to automatically set the tax rates paid by about 45,000 businesses to finance the state-run system, which provides benefits to unemployed workers.

Copyright 2013 The Associated Press.