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Program E: Unemployment Benefits Program

Program Authorization: R.S. 23:61

PROGRAM DESCRIPTION

The mission of the Unemployment Benefits Program is to promote a stable, growth-oriented Louisiana through the administration of a solvent and secure Unemployment Insurance Trust Fund, supported by employer taxes. It is also the mission of this program to pay Unemployment Compensation Benefits to eligible unemployed workers.

The goal of the Unemployment Benefits Program is to provide financial security to unemployed workers through timely and accurate payment of Unemployment Compensation Benefits funded by employers’ payments of quarterly unemployment taxes.

The Unemployment Benefits Program administers the Unemployment Insurance Trust Fund supported by employer taxes to pay Unemployment Compensation Benefits to eligible unemployed workers. The program’s main activities include payment of unemployment claims, investigation of claims, review and determination of appealed cases, and collection of unemployment taxes.

 

OBJECTIVES AND PERFORMANCE INDICATORS

Unless otherwise indicated, all objectives are to be accomplished during or by the end of FY 1999-2000. Performance indicators are made up of two parts: name and value. The indicator name describes what is being measured. The indicator value is the numeric value or level achieved within a given measurement period. For budgeting purposes, performance indicator values are shown for the prior fiscal year, the current fiscal year, and alternative funding scenarios (continuation budget level and Executive Budget recommendation level) for the ensuing fiscal year (the fiscal year of the budget document).

 

 

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with Fees and Self-generated Revenues and Federal Funds. The Fees and Self-generated Revenues consist of monies collected as a 5% penalty (for maximum of 5 months) and 1% per month interest assessed on employees who are delinquent in the payment of their contributions to the Unemployment Trust Fund. The money is placed in a special account in the State Treasury to be expended for cost of administration which is not otherwise payable from Federal Funds. In addition, fees are collected from private employment agencies. The Federal Funds are granted to each employment security agency, under the Social Security Act.

 

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

DESCRIPTION

 

 

 

 

 

$0

$37,131,531

441

 

ACT 19 FISCAL YEAR 1998-1999

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$0

0

 

None

 

 

 

 

 

$0

$37,131,531

441

 

EXISTING OPERATING BUDGET – November 20, 1998

 

 

 

 

 

$0

$30,744

0

Civil Service Fees

$0

($640,600)

0

Salary Base Adjustment

$0

($625,746)

0

Attrition

$0

($1,800,000)

0

 

Other Nonrecurring Adjustments – For one-time expenditures based on a BA-7 approved October 17, 1997 to be used exclusively for property improvements and/or automation enhancements and for other such improvements, facilities, equipment, staffing, and other unemployment insurance, etc.

$0

($10,841,414)

0

 

Other Adjustments - Transfer of salaries based on reorganization of the department to bring funding in line with actual spending projections in various programs

 

 

 

 

 

$0

$23,254,515

441

 

TOTAL RECOMMENDED

 

 

 

 

 

$0

($13,877,016)

0

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 62.6% of the existing operating budget. It represents 99.6% of the total request ($23,327,925) for this program. The 38% decrease is due to a non-recurring BA-7 approved October 17, 1997 to be used exclusively for the purposes of property improvements and/or automation enhancements and for other such improvements, facilities, equipment, staffing, and other unemployment insurance and transfer of salaries based on reorganization of the department to bring funding in line with actual spending projections. This program does not have any positions which have been vacant for 1 year or more.

PROFESSIONAL SERVICES

$33,543

 

Accounting/Auditing services for Employment Security Grants as required by federal regulations

$466,457

 

Attorney fees for collecting delinquent unemployment taxes 

     

$500,000

 

TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$4,040,942

 

Funding provided per ACT 1053 – This act established the Worker Training Fund in the Employment Security Administration Fund to be known as the Worker Development Training Account. This account is a social charge account which is collected by LDOL and placed in the Office of Employment Security Clearing Account, allocated according to law with portions forwarded to the UI Trust Fund, and portions deposited in the Workforce Development Training and Employment Security Administration accounts in the Employment Security Administration Fund

$1,347,279

 

 Disaster Unemployment Assistance (DUA) – This program is enacted when disaster is declared in Louisiana by the President of the United States. Trade Readjustment Assistance (TRA) – This program benefits individuals who are displaced from their jobs because of foreign trade. The company could move overseas or have a layoff due to foreign competition. Unemployment Compensation Federal Employees (UCFE-UCX) – Unemployment Compensation Exservicemen – Both of these programs are for military employees that are separated from their jobs. The Federal Government pays 100% of the benefits.

$660,137

 

The Work Opportunity Tax Credit Program provides tax credits to employers for hiring specific groups of workers. There are seven eligible under the Work Opportunity Tax Credit Program. For example, Qualified IV-A recipients who are recipients of welfare or Aid to Families with Dependent Children (AFDC); Qualified Veterans who have received welfare or AFDC and have received benefits for at least a nine-month period ending during the 12-month period ending on the hiring date, or who have received assistance under the Food Stamp Act of 1977 for at least a three-month ending on the hiring date; Qualified ex-felons who are economically disadvantaged and hired no later than one year after conviction or release from prison and High risk youth who are at least 18 years of age and whose principal place of abode is within a designated empowerment zone or enterprise community, etc.

     

$6,048,358

 

TOTAL OTHER CHARGES

     
   

Interagency Transfers:

$30,744

 

Civil Service Fees

     

$30,744

 

TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

$2,000,000

 

Funding provided for the following equipment: Virtual Tape System, Inserter, DASD, CPU Upgrade, 4890 Printer, Software, Communication Controller, and thin Client Expansion and year 2000 compliance

 

 

 

$2,000,000

 

TOTAL ACQUISITIONS AND MAJOR REPAIRS


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