The Challenge

Unemployment insurance benefits in Maryland are already low, and there is no mechanism to ensure that they increase over time to keep pace with wage growth and inflation.

In Maryland, the average weekly payment is just $275, which is not enough to keep workers and their families out of poverty as they transition into new jobs.

New legislation must be passed each time the state wants to adjust benefits.

In order to keep up with the growing economy, bills to increase the maximum benefit amount had to be passed in 2000, 2002, 2005, and again in 2007.

The Solution – Expand & Index Benefit Amounts to Ensure Adequate Support

Benefit increases are already indexed in many other states.

As of 2006, 31 other states and the District of Columbia index benefits to wage growth so that necessary increases are automatic.

Maryland should implement this system to ensure that unemployed workers have enough to get by in times of crisis.

Increasing UI benefits extends a critical safety net to Maryland families.

Increasing benefit amounts will increase the economic security of Maryland families.

This change will help ensure that hardworking families can meet their basic needs, such as housing, transportation, food, and healthcare, when dealing with the sudden hardship of job loss.

How Do We Pay for It?

UI changes are general fund neutral, thanks to the dedicated UI trust fund.

Maryland has a dedicated UI trust fund into which all UI payroll taxes are credited and from which all benefits are paid. The trust fund is healthy, with a balance of around $1 billion.

For further information, contact:

Melissa Broome

Job Opportunities Task Force

(410) 234-8046

melissa@jotf.org