Compendium of Budget Information for the 2011 General Session

Social Services
Appropriations Subcommittee
Subcommittee Table of Contents

Group: Social Services - Workforce Services & Rehab

Agency: Workforce Services

Line Item: Unemployment Insurance

Function

The Unemployment Insurance (UI) Program was created federally 75 years ago as part of the Social Security Act of 1935. The program is operated by each state in coordination with the federal government. The Utah Department of Workforce Services operates this program for the State of Utah.

According to statute, the program collects employer contributions for deposit in a trust fund, determines eligibility, and pays weekly benefits from the trust fund to unemployed workers. Administrative costs are federally funded. The benefit portion of the program was previously not part of the budget, but was included in the FY 2010 appropriation to help make all expenditures more transparent.

In past years, the UI program was part of the main DWS line item. However, during the 2010 General Session, the Legislature created two separate line items for the Unemployment Insurance Program and UI Trust Fund. This line item contains the administrative piece of the program, whereas the UI Trust Fund line item contains solely the amount carried in the Unemployment Compensation Trust Fund.

Statutory Authority

Authority to conduct the Unemployment Insurance Program in Utah is found in UCA 35A-4, Employment Security Act.

Intent Language

    Under the terms of Section 63J-1-603 of the Utah Code, the Legislature intends that any unused Reed Act funds appropriated to the Department of Workforce Services for Unemployment Insurance Modernization not lapse at the close of Fiscal Year 2010. It is further the intent of the Legislature that these funds be used for the purposes of the original Reed Act appropriation which includes reemployment, workforce development and labor exchange activities.

Funding Detail

Historical funding for the program combined the UI Trust in with administration. However, the budget table below shows detail only for the administrative side of the program. The separate line item for the UI Trust Fund details the amounts in the fund over the years.

Sources of Finance
2007
Actual
2008
Actual
2009
Actual
2010
Actual
2011
Approp
General Fund $0 $0 $0 $0 $165,000
Federal Funds $0 $178,117,600 $26,205,000 $27,434,300 $33,843,600
American Recovery and Reinvestment Act $0 $0 $0 $259,727,000 $0
Dedicated Credits Revenue $0 $32,700 $400 $0 $1,000
Trust and Agency Funds $0 $0 $6,000 $0 $0
Unemployment Compensation Trust $0 $0 $499,666,600 $626,197,000 $0
Transfers - Within Agency $126,687,600 $0 $0 $0 $0
Beginning Nonlapsing $0 $2,527,800 $1,940,200 $0 $0
Closing Nonlapsing $0 ($1,940,200) ($1,713,100) $0 $0
Lapsing Balance $0 $0 ($6,000) $0 $0
Total
$126,687,600
$178,737,900
$526,099,100
$913,358,300
$34,009,600
 
Programs:
2007
Actual
2008
Actual
2009
Actual
2010
Actual
2011
Approp
Unemployment Insurance $126,687,600 $178,737,900 $526,099,100 $913,358,300 $34,009,600
Total
$126,687,600
$178,737,900
$526,099,100
$913,358,300
$34,009,600
 
Categories of Expenditure
2007
Actual
2008
Actual
2009
Actual
2010
Actual
2011
Approp
Current Expense $0 $23,410,800 $26,432,500 $29,152,400 $34,009,600
Other Charges/Pass Thru $105,278,600 $155,327,100 $499,666,600 $884,205,900 $0
Transfers $21,409,000 $0 $0 $0 $0
Total
$126,687,600
$178,737,900
$526,099,100
$913,358,300
$34,009,600
 
Other Indicators
2007
Actual
2008
Actual
2009
Actual
2010
Actual
2011
Approp
Vehicles 0 0 0 1 0






Subcommittee Table of Contents