LD 1564 LR 454(03)
An Act To Amend the Laws Governing Unemployment Compensation
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Labor and Housing
Fiscal Note Required: Yes
Fiscal Note
Current biennium cost increase - Unemployment Compensation Trust Fund
Current biennium cost increase - All funds
Fiscal Detail and Notes
This legislation makes changes to the laws governing unemployment compensation including certain changes that will expand the amount of benefits paid out of the Unemployment Compensation Trust Fund beginning in fiscal year 2021-22.  The impact to the trust fund will depend on the level of unemployment in the State.  The estimated impact of these changes, developed by the Department of Labor, is provided in the table below.  According to the department, low periods of unemployment are such periods that took place in 2019 and high periods of unemployment are such periods that occurred in 2009.  These changes are not expected to result in an increase in an unemployment tax schedule.  Information from the department states that, generally, a benefit cost increase of $17.0 million or greater has the potential of causing an increase in the schedule in the following year.
The State, with a few exceptions, is a direct reimbursement employer and, as such, would experience an increase in unemployment compensation costs as a result of this legislation.  The impact will depend on actual experience.  Additional costs to the Department of Labor to implement the requirements of this legislation can be absorbed within existing budgeted resources.