123rd MAINE LEGISLATURE
		LD 1884		LR 2571(01)
	An Act To Create the Competitiveness Training Fund and Improve Maine Employment Security Programs
	Fiscal Note for Original Bill
	Sponsor: Rep. Campbell of Newfield
	Committee: Labor
	Fiscal Note Required: Yes
Fiscal Note
Undetermined current biennium cost increase - All Funds Undetermined future biennium revenue increase - Other Funds
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Appropriations/Allocations
	Federal Expenditures Fund		$3,850,000	($2,950,000)	($3,200,000)	($3,300,000)
	Competitiveness Training Fund		$1,350,000	$2,950,000	$3,200,000	$3,300,000
Revenue
	Employment Security Trust Fund		($35,050,000)	($37,950,000)	($3,200,000)	($3,300,000)
	Competitiveness Training Fund		$1,350,000	$2,950,000	$3,200,000	$3,300,000
Transfers
	Federal Expenditures Fund		$5,200,000	$0	$0	$0
	Employment Security Trust Fund		($5,200,000)	$0	$0	$0
Fiscal Detail and Notes
	This legislation includes initiatives to improve the State's employment security programs.
	First, the bill creates the Competitiveness Training Program to provide access to education, training and support to prepare career center clients for high-wage jobs in industries with significant demand for skilled labor.  The program is funded by employer contributions based on a predetermined yield.  The Department of Labor estimates total contributions to the Competitiveness Training Fund to be $1.35 million in fiscal year 2007-08 and $2.95 million in fiscal year 2008-09.  This legislation also requires that employer contributions to the Employment Security Trust Fund be reduced by the same amount so that the net impact of this initiative to employers is zero.  This bill also allocates personal services and all other resources to the Competitiveness Training Program to reflect the services that will be provided by current employees within the Department of Labor.
	This legislation also lowers the benefit reserve cap on the Unemployment Trust Fund from 21 months to 18 months which will reduce unemployment contributions for all employers by $33.7 million in calendar year 2008 and $35.0 million in calendar year 2009.
	This bill would also eliminate the pension offset against unemployment benefits for persons who receive social security or any other pension provided the person contributed at least 50% of the contributions to that pension.  This provision will increase benefits paid from the Unemployment Compensation Trust Fund beginning in fiscal year 2007-08.  Estimates developed by the Department of Labor using 2006 data indicate the increase in benefit costs to be approximately $4,000,000.  The cost increase in this bill is not expected to impact the unemployment contributions schedule until after the 2011 rate year.  The State and all other direct reimbursement employers will be required to repay the Unemployment Compensation Trust Fund for the additional benefit payments.
	This legislation proposes to eliminate the September 30, 2008 sunset for the provision that allows a person to collect unemployment benefits if that person is able and available for part-time work.  Eliminating the sunset will increase benefits paid from the Unemployment Compensation Trust Fund beginning in fiscal year 2008-09.  The amount can not be determined at this time.  The Department of Labor has indicated that benefits paid under this provision in calendar year 2006 were $3,460,262, or 3.5% of all benefits paid in 2006.
	Finally, this bill authorizes the use of $5.2 million of Reed Act funds to make certain technological upgrades and improvements to the unemployment insurance and employment services computer systems as well as improvements to the labor market information services computer systems as they relate to the analysis of unemployment and employment data.  This bill also provides that a portion of these funds will be used for the administrative costs associated with helping unemployment benefit recipients return to work more quickly.  The distribution of these funds to the different Department of Labor programs can not be determined at this time.