Utah House advances unemployment insurance modernization amid debate over federal funds

House Bill 18, sponsored by Representative Stephen Mascaro, passed the Utah House on Feb. 8, 2010 by a vote of 46-38. The bill updates the formula used to calculate unemployment-insurance benefits by using the most recent four completed calendar quarters of wages rather than the older ‘‘first four of the last five’’ standard. Proponents said the change modernizes calculations and corrects cases in which workers were previously denied benefits.

Mascaro told the chamber the update is technical and driven by improved payroll reporting systems; he said it does not increase appropriations and that the Department of Workforce Services and the Salt Lake Area Chamber of Commerce support the measure. During floor questions, he confirmed the change makes $20,000,000 available from federal ARRA funding (Section 2003) to cover implementation related costs and said the estimated cost to the state trust fund from the change would be a little over $3,000,000; Mascaro said the federal allocation would cover that impact for roughly seven to eight years.

Opponents voiced concern that accepting federal stimulus funds shifts costs to future generations and could create expectations of ongoing federal support. Representative Sumption and others called the federal money ‘‘our children’s money’’ and said accepting it risks future obligations. Supporters responded that the bill contains annual review language allowing the Legislature and advisory committees to monitor the trust fund and recommend changes if necessary.

The House approved HB18 46-38; the bill will be transmitted to the Senate for further consideration.