Topeka ? Gov. Kathleen Sebelius on Friday called for a cut in the tax that businesses pay to cover unemployment benefits.

Sebelius has directed Secretary of Labor Jim Garner to convene the Employment Security Advisory Council to recommend a reduction in unemployment tax rates.

“I would encourage the council to look at modifying the current UI (unemployment insurance) tax formula and adjusting it downward with the potential of saving Kansas employers approximately $80 million a year in unemployment taxes,” Sebelius said.

As of November, Kansas had about $615 million in the Unemployment Insurance Trust Fund, fueled by a growing economy and lower jobless rates. The fund had dropped to $218 million in 2004.

“The resilience of Kansas businesses is the basis for our economic recovery,” Sebelius said. “We should now take advantage of every opportunity to help them remain competitive.”

Leading up to the November election, GOP gubernatorial candidate Jim Barnett had called for a temporary halt to the collection of unemployment taxes.

At that time, Sebelius and Garner said it would be unwise to suspend all collections, but said the council would be taking a closer looks at its resources and making recommendations.