123rd MAINE LEGISLATURE
		LD 1884		LR 2571(02)
	An Act To Create the Competitiveness Training Fund and Improve Maine Employment Security Programs
	Fiscal Note for Bill as Amended by Committee Amendment "    "
	Committee: Labor
	Fiscal Note Required: Yes
Fiscal Note
Future biennium cost increase - All Funds
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Appropriations/Allocations
	Federal Expenditures Fund		$5,072,618	($387,658)	($399,288)	($411,267)
	Employment Security Trust Fund		$3,500,000	$8,000,000	$9,000,000	$9,300,000
	Competitive Skills Scholarship Fund		$1,350,000	$2,950,000	$3,200,000	$3,300,000
Revenue
	Employment Security Trust Fund		($18,250,000)	($37,250,000)	($20,700,000)	($3,300,000)
	Competitive Skills Scholarship 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 Competitive Skills Scholarship 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 Competitive Skills Scholarship Fund to be $1.35 million in fiscal year 2007-08 and $2.95 million in fiscal year 2008-09.  Employer contributions to the Employment Security Trust Fund are 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 Competitive Skills Scholarship 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 $16.9 million in fiscal year 2007-08 and $34.3 million in fiscal year 2008-09.
	This bill includes Other Fund allocations of $3,500,000 in fiscal year 2007-08 and $5,000,000 in fiscal year 2008-09 to the Unemployment Compensation Benefit Account within the Department of Labor for the cost associated with eliminating 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.  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 also includes Other Fund allocations of $3,000,000 in fiscal year 2008-09 to the Unemployment Compensation Benefit Account for the costs associated with eliminating the September 30, 2008 sunset of 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.
	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.  It 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.