COBI 2015 - Unemployment Insurance

Overview
Issues
Performance
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.

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.

The Unemployment Insurance line item contains the administrative piece of the program, whereas the Unemployment Compensation Fund line item contains only the amount carried in the Unemployment Restricted Account appropriated to pay benefits.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $21,356,400 from all sources for Unemployment Insurance. This is a 0.2 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $572,200 from the General/Education Funds, an increase of 3.6 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

Separate tables are shown under the tab labeled "Financials" in each COBI section. These tables provide information regarding: 1) funding sources (where the money comes from), 2) standardized state expenditure categories (where the money goes), and 3) agency sub-programs (when viewed at the line item level). For the most recent completed fiscal year, the following information represents the purposes for which the money was used:

Unemployment Insurance Detailed Purposes

Benefit Payments Made Within 14 Days

Percent of Employers Filing Timely Contribution Reports

Percent of Employers Registered With Department Within 90 Days of Becoming Liable

Separation Determinations With Quality Scores Equal to or Greater Than 95 Points

Statute

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

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.

For analysis of current budget requests and discussion of issues related to this budget click here.

Display By:

Program

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Programs	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Unemployment Insurance Administration	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
Adjudication	3,520,200	3,308,200	3,019,300	2,919,300	3,366,900	(45,200)	3,321,700	36,600	3,358,300
Total	$21,305,000	$25,699,400	$19,502,000	$19,130,500	$25,507,900	($4,202,800)	$21,305,100	$51,300	$21,356,400

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
General Fund	165,000	164,400	563,600	536,200	548,700	0	548,700	19,100	567,800
General Fund, One-time	0	385,600	(39,000)	1,800	3,800	0	3,800	600	4,400
Federal Funds	19,404,500	22,934,100	18,201,800	17,331,800	22,011,400	(3,951,600)	18,059,800	803,800	18,863,600
American Recovery and Reinvestment Act	1,180,500	356,000	4,900	1,300	0	0	0	0	0
Dedicated Credits Revenue	334,800	315,100	285,600	443,100	418,200	45,700	463,900	12,600	476,500
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	10,400	10,400
Transfers - Health	0	0	0	22,200	0	35,500	35,500	(35,500)	0
Transfers - Human Services	0	0	0	200	0	300	300	0	300
Transfers - Medicaid	104,100	91,400	142,600	96,200	225,800	(32,900)	192,900	32,500	225,400
Transfers - State Board of Regents	0	0	0	100	0	200	200	0	200
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	$21,305,000	$25,699,400	$19,502,000	$19,130,500	$25,507,900	($4,202,800)	$21,305,100	$51,300	$21,356,400

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	18,473,800	23,021,800	17,272,700	17,453,300	19,484,000	(843,000)	18,641,000	835,100	19,476,100
In-state Travel	22,700	17,200	11,900	8,800	46,300	700	47,000	0	47,000
Out-of-state Travel	24,000	35,200	25,500	38,400	45,600	(700)	44,900	0	44,900
Current Expense	2,375,400	2,185,600	2,031,900	1,493,900	5,733,800	(3,355,700)	2,378,100	(996,300)	1,381,800
DP Current Expense	345,500	439,600	160,000	136,100	198,200	(4,100)	194,100	212,500	406,600
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	$21,305,000	$25,699,400	$19,502,000	$19,130,500	$25,507,900	($4,202,800)	$21,305,100	$51,300	$21,356,400

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	299.50	279.30	260.50	(1.50)	259	259
Actual FTE	262.48	252.60	240.20	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.