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Department of Labor proposes shifting programs to Employment Security Account to free general fund dollars
Summary
House Bill 656 would allow the Department of Labor to fund certain workforce, reentry and human rights functions from the Employment Security Account, returning nearly $4 million per year to the general fund, according to agency testimony.
Commissioner Sarah Swanson told the Senate committee HB 656 is intended to restructure funding within the Department of Labor and Industry so that some programs now paid from the general fund would be eligible for Employment Security Account (ESA) dollars. "We're giving nearly $4,000,000 per year back to the general fund in this state, without reducing any services," she said, describing an actuarial review and conservative modeling used to justify the change.
Swanson said allowable uses would be expanded to include reentry programs, registered apprenticeship and the state share for AmeriCorps (the Office of Community Service). She told the committee the state share for the Office of Community Service is about $295,000 per year and that the adjustments will be made without tapping the general fund. The commissioner noted the department hired a retired U.S. Department of Labor actuary to model long‑term ESA sustainability.
Committee members asked technical questions about budget notes and implementation; Swanson said the fiscal note is a 1‑to‑1 transfer and that the department’s actuary provided tools to model revenues and expenditures.
