127th MAINE LEGISLATURE
		LD 675		LR 1302(02)
	An Act To Protect Earned Pay
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Labor, Commerce, Research and Economic Development
	Fiscal Note Required: Yes
Fiscal Note
Current biennium cost increase - Unemployment Compensation Trust Fund Future biennium revenue increase - Unemployment Compensation Trust Fund Current biennium cost increase - All Funds
			FY 2015-16	FY 2016-17	Projections  FY 2017-18	Projections  FY 2018-19
Appropriations/Allocations
	Federal Expenditures Fund		$96,943	$0	$0	$0
Fiscal Detail and Notes
	Increasing the amount of vacation time that is exempt from being included as deductible income when calculating a claimant's unemployment compensation benefit amount from the equivalent of 4 weeks to the equivalent of 12 weeks will increase costs to the Unemployment Compensation Trust Fund beginning in fiscal year 2015-16 due to an increase in benefit payments.  According to information provided by the Department of Labor, had this provision been in place in 2014, the estimated increase in benefit costs would have been between $120,000 and $200,000.
	This expansion of benefits may potentially affect the contribution rate schedule in future biennia.  The impact to all employers and the timing of the impact can not be determined at this time and will depend on the level of benefits paid, contributions received and the balance of the trust fund when the contribution schedule is calculated.
	This bill may increase unemployment costs for executive branch departments and agencies that are in direct reimbursement status.  Although the amount will depend on actual experience, the Department of Labor estimates that, had this provision been in place in 2014, the additional cost to the State would have been approximately $5,858.  An analysis of the State's unemployment benefit expenditures for fiscal year 2013-14 indicates that approximately 49.8% were from the General Fund, 21.1% were from Other Special Revenue Funds and 13.9% were from the Highway Fund.
	This bill includes a one-time Federal Expenditures Fund allocation of $96,943 in fiscal year 2015-16 to the Employment Security Services program within the Department of Labor for the costs associated with updating its unemployment consortium system and for revising its publications.