Saving Texas Employers Nearly $25 Million
Texas Insider Report: AUSTIN Texas - As part of its commitment to maintaining a strong business climate in Texas the Texas Workforce Commission (TWC) continues to find effective strategies to reduce employers UI tax costs while also conservatively managing the states Unemployment Compensation (UC) Trust Fund. TWC today announced that it has re-funded $709785000 in Unemployment Insurance (UI) bonds the agency issued in 2010.
The Texas Public Finance Authority issued these bonds yesterday on behalf of TWC at an estimated interest rate of 0.99 percent based on projected accelerated retirement of all bonds by July 2017. By issuing bonds at a lower interest rate and re-funding previous bonds TWC estimates a savings to employers of $24857885 as a result of this transaction.
The Texas Workforce Commission is committed to protecting the assets of this state and its employers and this bond issuance does just that" said TWC Chairman Andres Alcantar. The strength of the Texas economy is evidenced by strong consistent and diverse job growth across businesses calling Texas home."
As of December 31 2013 the Texas UC Trust Fund balance was approximately $1.4 billion. The TWC bonds issued today received the highest possible credit ratings from all three credit rating agencies including Moodys Standard & Poors and Fitch.
Debt to the Texas UC Trust Fund is paid through the collection of unemployment taxes from Texas employers. The $2.1 billion bond sale in December 2010 was issued to cover a 10-year period. At the time expected savings to employers was estimated to total approximately $110 million.
Being a responsible steward of the UC Trust Fund in order to preserve funds for those who have lost their jobs through no fault of their own is one of our highest priorities" said TWC Commissioner Representing Labor Ronny Congleton. Our Texas economy has had an excellent track record over the past five years with job growth in most industries. TWC is ready to help find employment opportunities for all Texans who are looking for work."
By taking advantage of favorable interest rates for Texas and using an innovative bond sale and re-funding strategy we estimate savings to employers will be almost $25 million" said TWC Employer Commissioner Hope Andrade. This is smart business for our state and for our 490000 employers that choose to live work and run their businesses here. I am proud of our agency staff for working hard to pursue opportunities that benefit the state."
The Texas Workforce Commission is a state agency dedicated to helping Texas employers workers and communities prosper economically. For details on TWC and the programs it offers in coordination with its network of local workforce development boards call 512-463-8942 or visit www.texasworkforce.org.
Saving Texas Employers Nearly $25 Million
Texas Insider Report: AUSTIN Texas - As part of its commitment to maintaining a strong business climate in Texas the Texas Workforce Commission (TWC) continues to find effective strategies to reduce employers UI tax costs while also conservatively managing the states Unemployment Compensation (UC) Trust Fund. TWC today announced that it has re-funded $709785000 in Unemployment Insurance (UI) bonds the agency issued in 2010.
The Texas Public Finance Authority issued these bonds yesterday on behalf of TWC at an estimated interest rate of 0.99 percent based on projected accelerated retirement of all bonds by July 2017. By issuing bonds at a lower interest rate and re-funding previous bonds TWC estimates a savings to employers of $24857885 as a result of this transaction.
The Texas Workforce Commission is committed to protecting the assets of this state and its employers and this bond issuance does just that" said TWC Chairman Andres Alcantar. The strength of the Texas economy is evidenced by strong consistent and diverse job growth across businesses calling Texas home."
As of December 31 2013 the Texas UC Trust Fund balance was approximately $1.4 billion. The TWC bonds issued today received the highest possible credit ratings from all three credit rating agencies including Moodys Standard & Poors and Fitch.
Debt to the Texas UC Trust Fund is paid through the collection of unemployment taxes from Texas employers. The $2.1 billion bond sale in December 2010 was issued to cover a 10-year period. At the time expected savings to employers was estimated to total approximately $110 million.
Being a responsible steward of the UC Trust Fund in order to preserve funds for those who have lost their jobs through no fault of their own is one of our highest priorities" said TWC Commissioner Representing Labor Ronny Congleton. Our Texas economy has had an excellent track record over the past five years with job growth in most industries. TWC is ready to help find employment opportunities for all Texans who are looking for work."
By taking advantage of favorable interest rates for Texas and using an innovative bond sale and re-funding strategy we estimate savings to employers will be almost $25 million" said TWC Employer Commissioner Hope Andrade. This is smart business for our state and for our 490000 employers that choose to live work and run their businesses here. I am proud of our agency staff for working hard to pursue opportunities that benefit the state."
The Texas Workforce Commission is a state agency dedicated to helping Texas employers workers and communities prosper economically. For details on TWC and the programs it offers in coordination with its network of local workforce development boards call 512-463-8942 or visit www.texasworkforce.org.
