Posted on 03/16/2002 10:27:39 AM PST by Tumbleweed_Connection
U.S. Labor Secretary Elaine L. Chao today announced the transfer of $8 billion to state Unemployment Insurance trust funds from excess funds in the federal unemployment accounts.
“I am pleased to see so much of the President’s proposal for short-term reform of the Unemployment Insurance (UI) and Employment Service (ES) programs become reality through implementation of the economic stimulus package,” Emily Stover Derocco, assistant secretary of the employment and training administration said. “The distribution comes at a time when many state trust funds have been reduced by the recession and will help mitigate the impact. These funds will also be more productive now as they will be in position to help grow state economies.”
The distribution was authorized by the recently enacted Job Creation and Worker Assistance Act of 2002, more popularly known as the economic stimulus package. This enacted much of what President Bush has proposed for short-term changes as part of his comprehensive New Balance reform for the UI and ES programs. States will be able to use these funds to improve the solvency of their UI trust funds, reduce payroll taxes, strengthen the One-Stop systems through improved employment services to workers and employers and to expand UI benefit eligibility.
State shares of the $8 billion transfer were largely determined by each state’s share of federal unemployment taxes collected in calendar year 2000.
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