Unemployment compensation.

01LSO-0203.L1

                                                                                                                                                                                               

FISCAL NOTE

 

	FY 2002	FY 2003	FY 2004
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase:
EMPLOYMENT SUPPORT FUND	50,000	50,000	300,000
FEDERAL FUNDS (Federal Unemployment Comp. Fund)	1,200,000	1,200,000	1,200,000
WORKFORCE DEV. TRAIN. FD.	2,500,000	2,500,000	3,000,000

 

Source of revenue increase:

 

Redistribution of special Unemployment Insurance reserve tax rate

 

Assumptions:

 

Estimated UI taxes in FY02 = $25 million, FY03 = $25 million, FY04 = $30 million.

Redistribution to Workforce Development Training Fund = 10% of total taxes.

Redistribution of to Employment Support Fund = 5% of total taxes or $1.25 million in FY02 and FY03, and $1.5 million in FY04.

The bill eliminates the adjustment factor for the Employment Support Fund, which currently generates $1.2 million annually.

 

Anticipated Revenue Decrease:
FEDERAL FUNDS (Federal Unemployment Comp. Trust Fund)	3,000,000	3,000,000	0
UNEMPLOYMENT TRUST FUND	3,750,000	3,750,000	4,500,000

 

Source of revenue decrease:

 

Unemployment taxes paid by employers

 

Assumptions:

 

Estimated Unemployment Insurance Taxes in 2002 = $25 million, in FY03 = $25 million in FY04 = $30 million.

One-time tax cut for calendar year 2002 - $3 million in FY02, $3 million in FY03.

The current tax diversion (20%) flows directly into the State UI Trust Fund.  (Current diversion FY02 = $5 million, FY03 = $6 million.)

This bill redistributes 75 percent of the revenue from the State UI Trust Fund.

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Anticipated Expenditure Increase:
WORKFORCE DEV. TRAIN. FD.	2,000,000	2,000,000	2,400,000

 

Source of expenditure increase:

 

Grants to employers to train or retrain their workers

 

Assumptions:

 

Additional revenue - $2.5 million in FY02 and FY03, and $3.0 million in FY04.  Eighty percent of revenue will be awarded each year.

 

Prepared by:   Beth Nelson, Dept. of EmploymentPhone:   777-7672

 

 

In addition, this bill has administrative impact which appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements.  As introduced, the bill does not modify any state agency budget or current personnel authorizations.  The following state agencies may be affected administratively:

 

Department of Employment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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