KY unemployment insurance rate is set to hit record highs ahead of the November 8 general election, according to a report from a labor group.
The Kentucky State Employees Retirement System, which manages more than $100 billion in assets and is a major employer of the state’s roughly 6 million workers, is forecasting a 3.9% increase in its unemployment insurance contributions in November.
The increase, which is more than double what it has seen in recent years, is nearly the same as what it would have been if the state had stayed on the path of keeping the rate at current levels, the report said.
It is expected to have more than 10% of the payrolls it currently provides in the November 6 election.
A report released last week by the Kentucky Chamber of Commerce predicted that the unemployment insurance contribution will reach $6.1 billion, a record high.
The chamber said that was about $8.4 billion higher than what it projected would be during the 2016 election cycle.
The report comes as Kentucky faces a $9.5 billion deficit in the fiscal year that ends on September 30.
The state’s unemployment insurance program is scheduled to begin withdrawing some of the funds in October, but has so far failed to raise enough money to offset the projected shortfall.
The bill to fund unemployment insurance is scheduled for a Senate vote next week.