COBI 2015 - Unemployment Insurance Administration

Overview
Issues
Background
Financials

Sources Uses

FY 2016 Appropriation

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

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $17,998,100 from all sources for Unemployment Insurance Administration. This is a 0.1 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $343,000 from the General/Education Funds, an increase of 3.3 percent from revised Fiscal Year 2015 estimates.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time ARRA Adjustments$190,000$0

OngoingOne-TimeFinancing Source

$190,000$0Unemployment Compensation Fund

The Legislature expressed interest in reviewing the federal stimulus or American Reinvestment and Recovery Act (ARRA) money separate from the annual review of federal funds.

Attorney General Dedicated Credit Adjustments$10,000$0

OngoingOne-TimeFinancing Source

$1,500$0General Fund

$8,500$0Federal Funds

This item designates additional funding appropriated to an agency to pay higher costs for Attorney General services, due to statewide and AG-specific compensation increases.

Special Administrative Expense Account$1,000,000$0

OngoingOne-TimeFinancing Source

$1,000,000$0GFR - Special Administrative Expense

Funding will be used for a DWS request of $6.0 million from the Special Administrative Expense Account - $1.0 million of which is required to pay interest to use this funding for non-unemployment related items - to increase job-growth programs.

Staff Analysis

For the most recent completed fiscal year, the following information represents the purposes for which the money was used:

Unemployment Insurance Administration Detailed Purposes

According to statute, the program collects employer contributions for deposit in a restricted account, determines eligibility, and pays weekly benefits from the restricted account to unemployed workers. Administrative costs are federally funded.

During the 2010 General Session the Legislature created two separate line items: 1) Unemployment Insurance and 2) Unemployment Compensation Fund. The Unemployment Insurance line item contains the administrative piece of the UI program and the Adjudication program. The Unemployment Compensation Fund line item contains only the amount in the Unemployment Restricted Account appropriated to pay benefits.

Intent Language

HB0003: Item 86

Under Section 63J-1-603 of the Utah Code the Legislature intends that up to $60,000 of the appropriations provided for the Unemployment Insurance line item in Item 32 of Chapter 13 Laws of Utah 2014 not lapse at the close of Fiscal Year 2015. The use of any nonlapsing funds is limited to computer equipment and software and one-time projects associated with addressing appeals or public assistance overpayment caseload growth.

SB0002: Item 78

All General Funds appropriated to the Department of Workforce Services - Unemployment Insurance Administration line item are contingent upon expenditures from Federal Funds - American Recovery and Reinvestment Act (H.R. 1, 111th United States Congress) not exceeding amounts appropriated from Federal Funds - American Recovery and Reinvestment Act in all appropriation bills passed for Fiscal Year 2016. If expenditures in the Unemployment Insurance Administration line item from Federal Funds - American Recovery and Reinvestment Act exceed amounts appropriated to the Unemployment Insurance Administration line item from Federal Funds - American Recovery and Reinvestment Act in Fiscal Year 2016, the Division of Finance shall reduce the General Fund allocations to the Unemployment Insurance Administration line item by one dollar for every one dollar in Federal Funds - American Recovery and Reinvestment Act expenditures that exceed Federal Funds - American Recovery and Reinvestment Act appropriations.

SB0002: Item 78

The Legislature intends that the American Recovery and Reinvestment Act appropriation provided for the Unemployment Insurance Administration line item is limited to one-time projects associated with Unemployment Insurance modernization.

SB0007S01: Item 22

The Legislature intends that the Department of Workforce Services report on the following performance measures for the Unemployment Insurance line item: (1) Percentage of New Employer Status Determinations made within 90 days of the last day in the quarter in which the business became Liable (Target => 70%), (2) Percentage of UI Separation Determinations with Quality scores equal to or greater than 95 points, based on the evaluation results of quarterly samples selected from all determinations (Target => 90%), and (3) Percentage of UI Benefits Payments made within 14 days after the week ending date of the first compensable week in the benefit year (Target => 87%) by January 1, 2016 to the Social Services Appropriations Subcommittee.

Display By:

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
General Fund	124,200	121,900	320,300	281,200	428,800	(100,000)	328,800	11,900	340,700
General Fund, One-time	0	385,600	0	1,500	3,200	0	3,200	(900)	2,300
Federal Funds	15,940,700	19,680,400	15,441,400	14,858,300	18,878,800	(3,748,300)	15,130,500	776,300	15,906,800
American Recovery and Reinvestment Act	1,180,500	356,000	4,800	1,300	0	0	0	0	0
Dedicated Credits Revenue	334,600	314,600	284,100	356,800	417,500	42,500	460,000	12,700	472,700
GFR - Special Administrative Expense	123,900	1,500,000	287,500	1,205,300	2,000,000	0	2,000,000	(982,200)	1,017,800
Unemployment Compensation Fund	0	0	0	500,000	300,000	(300,000)	0	190,000	190,000
Transfers	0	0	0	0	0	0	0	5,900	5,900
Transfers - Medicaid	88,700	79,900	89,600	14,500	112,700	(51,800)	60,900	1,000	61,900
Beginning Nonlapsing	0	7,800	55,000	0	0	0	0	0	0
Closing Nonlapsing	(7,800)	(55,000)	0	0	0	0	0	0	0
Lapsing Balance	0	0	0	(1,007,700)	0	0	0	0	0
Total	$17,784,800	$22,391,200	$16,482,700	$16,211,200	$22,141,000	($4,157,600)	$17,983,400	$14,700	$17,998,100

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	15,278,900	20,122,300	14,489,700	14,678,400	16,506,900	(862,000)	15,644,900	802,700	16,447,600
In-state Travel	22,200	17,100	11,500	8,100	45,300	(2,100)	43,200	0	43,200
Out-of-state Travel	21,600	27,100	20,000	34,900	34,100	2,100	36,200	0	36,200
Current Expense	2,070,800	1,841,300	1,813,100	1,360,000	5,370,300	(3,291,200)	2,079,100	(997,600)	1,081,500
DP Current Expense	327,700	383,400	148,400	129,800	184,400	(4,400)	180,000	209,600	389,600
DP Capital Outlay	71,400	0	0	0	0	0	0	0	0
Transfers	(7,800)	0	0	0	0	0	0	0	0
Total	$17,784,800	$22,391,200	$16,482,700	$16,211,200	$22,141,000	($4,157,600)	$17,983,400	$14,700	$17,998,100

Show Table | Show Additional Information

Other Indicators	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Approp
Budgeted FTE	303.80	255	242	226.50	0.50	227	227
Actual FTE	227.89	220.90	208.73	0	0	0	0
Vehicles	1	1	1	1	0	1	1

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.