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129th MAINE LEGISLATURE |
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LD 2167 |
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LR 3296(02) |
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An Act To
Implement Provisions Necessary to the Health, Welfare and Safety of the
Citizens of Maine in Response to the COVID-19 Public Health Emergency |
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Fiscal Note for
Bill as Engrossed with:
No Amendments |
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Committee: Not Referred |
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| Fiscal Note |
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Potential current biennium cost increase - Unemployment
Compensation Trust Fund
Potential current biennium cost increase - All Funds |
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FY 2019-20 |
FY 2020-21 |
Projections FY 2021-22 |
Projections FY 2022-23 |
| Net Cost
(Savings) |
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General Fund |
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$500,000 |
$0 |
$0 |
$0 |
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| Appropriations/Allocations |
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Other Special Revenue Funds |
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$500,000 |
$500,000 |
$0 |
$0 |
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| Transfers |
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General Fund |
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($500,000) |
$0 |
$0 |
$0 |
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Other Special Revenue Funds |
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$500,000 |
$0 |
$0 |
$0 |
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| Fiscal Detail
and Notes |
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Part A of this
bill allows the Governor, in consultation with the Commissioner of Education,
to implement a plan to continue to provide lunches to students who are
currently receiving free or reduced-priced meals at a school that is closed
due to the COVID-19 virus. According to the Department of Education, schools
that experience an unanticipated closure are allowed to serve students meals
through the summer food service program if they meet certain requirements.
Eligible schools that participate in the summer food service program will be
federally reimbursed for the meals served. |
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Part B of this
legislation may result in more benefits being distributed from the
Unemployment Compensation Trust Fund (Fund) as a result of more individuals
being eligible for the benefit in a time of a public health emergency. The
cost to the Fund will depend on the number of individuals who experience a
work disruption during this time. |
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Under Part B of
the bill, benefits paid to individuals who are dislocated or temporarily laid
off as a result of a public health emergency are not to be charged against
the experience rating record of any employer. This means that the future
contribution rate of employers will not be increased for unemployment
benefits attributable to a public health emergency. The Department of Labor
has estimated that if the unemployment rate were to increase from the
approximately 3% rate (as of December 2019) to 4% from April 1, 2020 to May
30, 2020, the impact to the Fund would be approximately $8.4 million. If the
unemployment rate were to increase to 5% over the same time period, the
impact to the Fund would be approximately $16.2 million. The additional cost
will depend on actual experience. Direct reimbursement employers would
continue to be charged for benefits to their employees. |
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Legislation in
Part B of this bill also waives the one week waiting period that must be
served before an individual who is dislocated or temporarily laid off as a
result of a public health emergency can begin collecting unemployment
benefits. The cost to the State as a direct reimbursement employer will
depend on such factors as the number of employees affected, the length of the
work stoppage and the amount of leave employees have available to use during
the time they are out. |
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Additional costs
to the Department of Public Safety, Emergency Medical Services, associated
with Part C can be absorbed within existing budgeted resources. |
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Part I of this
bill establishes the Loan Guarantee Program Fund (Fund) within the Office of
Treasurer of State with a one-time transfer of $500,000 from the General Fund
in fiscal year 2019-20. It also includes an Other Special Revenue Funds
allocation to the Office of the Treasurer of State of $500,000 in fiscal
years 2019-20 and 2020-21 to expend the funds. If this amount is not
sufficient to cover the State's liability, additional funding will be
required. The Fund will be used to guarantee the repayment of the amount of
loans made by eligible financial institutions to Maine residents who have
experienced a reduction in income since January 1, 2020 until December 31,
2020 due to COVID-19. The bill allows loans up to a maximum of the lesser of
$5,000 or an individual's most recent monthly after-tax pay reduced by any
unemployment compensation benefits. Individuals are eligible to apply for up
to 3 loans under the program. Administrative costs incurred by the Office of
Treasurer of State can be absorbed within existing budgeted resources. Part I
also includes a provision that allows the Finance Authority of Maine (FAME)
to retain a portion of the money it recovers from loans in default to pay for
its costs to administer the loan guarantee program. FAME will not require a
General Fund appropriation. However, this provision will reduce the amount of
funds returned to the Loan Guarantee Program Fund from the recovery of
defaulted loans. |
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Additional costs
to the Department of Health and Human Services associated with Part K can be
absorbed within existing budgeted resources. |
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Depending upon
the actions the Governor takes, additional election costs to the Department
of Secretary of State may be incurred. No estimate can be made until any such
actions are determined. Additional costs to the Office of the Governor
associated with Part L can be absorbed within existing budgeted resources. |
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