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JBC lowers balance caps for Employment Support and UI support funds; motion passes unanimously
Summary
The Joint Budget Committee voted 6-0 to adopt staff recommendations to lower the Employment Support Fund (ESF) balance cap to $3.5 million and reduce the UI program support fund cap from $31 million to $25 million; staff said the out-year general fund relief is limited in the near term.
Phoebe Kanagaraja, JBC staff analyst, asked the committee to approve technical corrections and balance-cap adjustments related to the Department of Labor and Employment and unemployment insurance (UI) program funds.
Kanagaraja told the committee she recommends lowering the ESF balance cap to $3,500,000 (about 36% of estimated expenditures for that fund) and lowering the UI program support fund cap from $31,000,000 to $25,000,000 (about 50% of estimated expenditures for that fund).
The nut graf: Staff said lowering the caps produces modest near-term effects on general fund relief but can increase general fund relief in later years; the committee voted to adopt the staff recommendation so staff can reflect the change in ongoing fiscal tables.
Kanagaraja explained that further lowering the UI support fund cap would not materially change general-fund relief in the immediate two fiscal years because the UI support fund is an enterprise fund and most diverted revenue would flow to the unemployment insurance trust fund to pay benefits; the fiscal impact in out years would be larger but still modest compared with the fund's size.
Motion and vote: The committee's vice chair moved the staff recommendation regarding balance-cap adjustments; there were no objections and the motion passed 6-0.
Ending: The committee recorded the change for figure-setting and requested staff to reflect the decision in updated fiscal tables.
