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JFAC backs Department of Labor budget adjustment; report language on immigration and disability determinations split committee panels
Summary
Brooke Dupree, a Legislative Services Office analyst, told JFAC that lower unemployment projections led the Department of Labor to request a funding shift from federal grants to a dedicated fund for FY2026 unemployment insurance operations.
Brooke Dupree, a budget and policy analyst with the Legislative Services Office, presented the Department of Labor's FY2026 request, which included a $7.33 million ask for unemployment insurance operations and other technical adjustments. Dupree told the committee the department requested a $5 million increase from the Employment Security Special Administration Fund (a dedicated fund derived from interest on the Employment Trust Fund) and a corresponding $5 million reduction in federal grant appropriations because lower unemployment numbers had reduced the expected federal award.
Senator Cook moved the committee's budget motion to add $5,000,000 from the Employment Security Special Administration Fund and reduce $4,839,000 (and 15.58 FTPs) from federal grant funds for a net increase of $161,000. Cook told the committee the change was suggested by the Labor director to align operations with expected revenue and staffing changes. The motion carried; committee announcements recorded a due-pass recommendation.
After the budget vote, two pieces of intent language were offered for the Department of Labor. The first would require a report to JFAC analyzing the impact of illegal immigration on the state's labor market. The second would require a report reviewing the costs of administering disability-determination services at the state level versus the federal level. Supporters said the reports would provide factual information to inform future policy; opponents cautioned that the committee was directing executive-branch work without additional appropriation and that disability determinations are governed by federal law and stakeholder consultation (including protections under the Americans with Disabilities Act).
Senate members recorded a majority in favor of the language items; however, the House delegation failed to approve the language. Committee announcements stated the language passed on the Senate side but did not receive a House majority, and therefore the language failed in committee and would be referred to the House for further consideration.
Roll-call tallies announced after the budget vote showed the motion carried with a due-pass recommendation. The record for the separate language items shows split outcomes: approved by the Senate panel but not by the House panel in JFAC; transcript commentary recorded substantive concerns about mission creep, resource availability, and the need to consult disability stakeholders before changing determination procedures.
The committee advanced the Department of Labor budget to the next step with the due-pass recommendation; the proposed reporting language will require separate handling because it failed to secure approval from both panels in committee.
