House approves bill shifting Social Security-offset payments onto state unemployment trust

Representative Mascaro urged the House to approve Senate Bill 11, telling members the measure changes who pays the part of unemployment benefits reduced when claimants also receive Social Security. Mascaro said the bill "will put us in compliance with the federal government's requirements on how we pay unemployment insurance to people that are receiving social security income" and that employers and the Employment Advisory Council support the change.

Mascaro described the existing practice: an individual receiving $300 in Social Security who then becomes unemployed could see their unemployment benefit effectively halved under the state's prior offset policy. He said that half was previously paid using federal Reed Act funds, but that a 2006 notice required the state to stop using Reed Act dollars for that offset and instead charge the state unemployment insurance trust fund.

The change, Mascaro said, allows the released Reed Act dollars "to be used in other places in workforce services," and the bill's fiscal note reflects a state revenue increase of about $48,000 in 2008 with a larger effect in 2009 as the federal dollars are redirected.

After discussion was closed and the chamber voted, the Speaker announced Senate Bill 11 had passed the House 69–0. The measure will be signed by the Speaker and transmitted to the Senate for the president's signature.

The action marks a procedural compliance step with federal guidance on use of Reed Act funds and reallocates responsibility within state accounts; the House record shows the bill had endorsement from the Employment Advisory Council and unanimous interim committee support.