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BOLI funding proposal would use WBF collections to create ongoing assessment for staffing, presenter says
Summary
Josh Nasbe told MLAC that SB 1506 (LC 26) would use Worker Benefit Fund collection infrastructure to assess two‑tenths of one cent, split between labor and industry, to fund roughly $19 million for BOLI staffing through about 2033; DCBS said the change would add about one‑tenth of a penny per side in its calculation.
At the Jan. 22 MLAC meeting, Josh Nasbe of the Bureau of Labor and Industries outlined LC 26, a funding proposal to be introduced in the Legislature as Senate Bill 1506. Nasbe said the bill would not draw down existing Worker Benefit Fund (WBF) programs but would instead use the WBF's collection infrastructure to levy an assessment equal to two‑tenths of one cent, equally shared by labor and industry, to support approximately $19 million in BOLI staffing through an estimated 2033 timeframe.
Nasbe said the revenue would be placed in a separate account and would not "impact the funds in the WBF in any way." He referenced prior short‑term funding of $15 million from the WBF during the last biennium and said SB 1506 aims to create a more sustainable, assessment‑based approach. Committee members asked why the WBF mechanism was chosen rather than a new program; Nasbe said the work group sought efficiency by using existing, cost‑effective collection and distribution mechanisms.
Members also asked whether the proposal would amount to a tax increase. Nasbe said DCBS calculations showed the proposal would add an additional one‑tenth of a penny assessment on both labor and industry. No vote was taken; Nasbe said amendment language is not yet available and the issue will return at a future MLAC meeting, potentially with draft amendments.
