On February 11, Associate Policy Director Karrington Anderson testified before the Economic Matters Committee in opposition to HB 188 – Unemployment Insurance Modernization Act of 2026.
This bill fundamentally restructures how minimum and maximum weekly unemployment insurance (“Unemployment”) benefits are calculated by tying them to the state average weekly wage, rather than the fixed statutory schedule used under current law.
Because counties reimburse the State for unemployment benefits, the bill would impose immediate and substantial new fiscal obligations on local governments already facing mounting budget pressures and limited revenue flexibility. MACo is concerned about the speed and rigidity of the proposed increases. Last year’s legislation contemplated a longer phase-in period before reaching the new maximum benefit levels. This bill significantly accelerates that timeline, leaving counties little flexibility to plan for or absorb the added costs.
HB 188 would replace the current benefits cap with a formula that
rapidly increases benefits. Beginning July 1, 2026, the minimum weekly benefit must be at least 15 percent of the average weekly wage. The maximum weekly benefit would reach 40 percent of the state average weekly wage by January 1, 2027. County governments are “reimbursable employers” that pay Unemployment benefits directly, rather than contributing to the State Unemployment Insurance Trust Fund. As Unemployment benefits increase, local government expenditures to reimburse the Trust Fund for benefits paid to former county employees would rise significantly and immediately.
HB 188’s cross-file, SB 3, was also heard on February 11 before the Finance Committee. Karrington Anderson testified in opposition to this bill.
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