***Weekly Update***
From Legislative Committee Chair: Todd Kolden, Aberdeen Central Office
Week of July 7, 2008
UI PROVISIONS INTACT AS HOUSE PASSES BIPARTISAN WAR FUNDING BILL
• The U.S. Senate on agreed with the House-passed bill and passed the H.R. 2642, the domestic spending provisions of the war supplemental appropriations bill, providing extended unemployment insurance (UI) benefits and additional funds to states for administrative costs of UI, by a vote of 92-6. The bill was signed by President Bush.
• The bill represents a compromise from earlier proposals and includes up to 13 weeks of extended benefits in all states and $110 million in supplemental funding in the form of Grants to States for the UI administrative costs for the balance of fiscal year 2008.
• The primary UI-related features of the bill include:
o Emergency unemployment compensation benefits will be available to individuals who have exhausted regular unemployment compensation under state law in all states for up to 13 times the individual's average weekly benefit amount for the benefit year or 50 percent of the total amount of regular compensation payable to the individual during the individual's benefit year, whichever is less. (Note: this means that if individuals qualify for fewer weeks of regular state benefits they will only be eligible for 50 percent of that amount e.g. an individual qualifying for 20 weeks of state benefits would only receive 10 weeks under the new federal extension;
o The bill provides a reach back to individuals who have exhausted regular unemployment compensation and whose benefit year ended no earlier than May 1, 2007.
o To be eligible, individuals must have exhausted all rights to regular state compensation and have worked 20 weeks in full-time covered employment or earned the equivalent in covered wages;
o No payments of federal emergency benefits would be made for any week beginning after June 30, 2009.
o USDOL will transmit agreements to states --- which could occur in the next few weeks.
SENATE APPROPRIATIONS PANEL RESTORES FUNDING FOR CRITICAL LABOR PROGRAMS - DRAFT BILL TEXT AVAILABLE
• The Senate Appropriations Committee approved the Labor-HHS-Education Appropriations bill by a vote of 26-3. According to a summary, legislation provides $2.9 billion for state grants for job training, an increase of $25 million over last year and $499 million over the budget request.
• Funding Levels in the Senate Bill are at the following Levels:
o $703.8 million for Wagner-Peyser Employment Service Grants to States;
o $864 million for WIA Adult;
o $930 million for WIA Youth;
o $1.481 billion (includes National Reserve) for WIA Dislocated Worker;
o $2.782 billion for Unemployment Insurance (UI) State Activities;
o UI Contingency Reserve: The Senate bill contains a reserve of $199 million should the unemployment workload exceed an average weekly insured claims volume of 3,487,000.
LABOR-HHS-EDUCATION APPROPRIATIONS BILL STALLS IN HOUSE
• The lead House appropriator, Chairman David Obey (WI), warned the appropriations process may already be over for the year after a partisan dispute over gas prices prompted him to shut down the Labor-HHS-Education Appropriations markup.
• The House Appropriations Committee adjourned abruptly during its markup of the fiscal 2009 Labor-HHS-Education and Agriculture bills when Representative Jerry Lewis (CA), the panel's ranking member, tried to bring up the Interior appropriations bill to force a vote on off-shore oil drilling.
• Over the last several weeks, Chairman Obey has moved many of the 12 fiscal year 2009 bills through the Appropriations Committee and had planned for the House to vote on each of these bills.
• After the dispute, it is uncertain whether the House majority will wait until after the November elections before deciding how to finish the annual appropriations process or whether they will still move the 12 separate bills through committee and to the House Floor. It is unlikely any of the appropriations bills will be sent to President Bush as he has threatened to veto bills that exceed his overall spending request.
SENATE MAJORITY WILL MOVE SECOND SUPPLEMENTAL BEFORE AUGUST RECESS - SENATORS URGING RESTORATION OF RESCISSION FOR WIA PROGRAMS
• Senators Herb Kohl (WI), Maria Cantwell (WA) and Susan Collins (ME) are seeking a restoration of the $250 million rescission to the Workforce Investment Act (WIA) Adult, Youth and Dislocated Worker programs.
• The Senators gained support from almost 30 of the their colleagues and sent a letter to the Chairman and Ranking Member of the Senate Appropriations Committee urging a restoration of these funds in a second supplemental stimulus package.
• Senate Majority Leader Harry Reid (NV) and House Speaker Nancy Pelosi (CA) are currently laying the groundwork for a second package focused on domestic spending they plan to bring to the floors of both chambers before Congress departs for a lengthy break in August.
Week of July 14, 2008
HOUSE-SENATE APPROPRIATION BILLS RESTORE FUNDING AND ADDRESS KEY POLICY ISSUES
• Funding for critical workforce programs slated for elimination or cuts under the U.S. Department of Labor's proposed FY 2009 budget would be restored by the House and Senate Appropriations Committees.
• The chart below provides a comparison of the House and Senate appropriations bills. The Senate Bill, S.3230, was reported out of the Senate Appropriations Committee on June 26, 2008. Markup activity on the House bill was suspended on June 26 because of a partisan dispute. If these bills are enacted, significant funding and policy developments include:
Funding:
• Workforce Investment Act - The House and Senate bills reject cuts to Workforce Investment Act (WIA) Adult, Youth and Dislocated Worker programs and would restore funding at or above FY 2008 levels.
• Wagner-Peyser Employment Service Grants - The House and Senate bills strongly disagreed with USDOL's effort to eliminate funding for Wagner-Peyser Act services and would restore funding to the FY 2008 level of $703 million. The House Subcommittee report noted the program "serves 13 million participants annually and plays an important role in administering the work search requirement for UI claimants." The House report also notes that "other programs, such as unemployment insurance program integrity, foreign labor certification activities, and employment services for veterans - are all based within State Employment Service agencies."
• Unemployment Insurance - Administrative Costs - The Senate bill would provide $199 million in additional funding for the administrative costs associated with the unemployment insurance workload compared to the House version. The Senate bill used the Congressional Budget Office (CBO) threshold trigger of 3,486,000 average weekly insured claims volume while the House bill used the USDOL threshold trigger of 2,790,000 average weekly insured claims. States might need additional resources in FY 2009 to administer UI claims. NASWA will work with Congress to determine the appropriate level of funding for UI administration in FY09 and the appropriate level at which the threshold trigger should be set. Just two weeks ago, President Bush signed a supplemental appropriation bill providing $110 million in grants to states for the UI administrative costs that had been under funded for fiscal year 2008.
• Foreign Labor Certification (FLC) - The House and Senate provided an increase to help modernize and upgrade the FLC program through information technology improvements. However, the House expressed concern with USDOL's new requirement for State workforce agencies to assume the employment verification in the H-2A program and recommended that funding not be used for this purpose.
• Labor Market Information (LMI) - The House and Senate bills would continue funding these programs at the FY 2008 level of approximately $52 million - programs such as America's Career Information Network, improving efficiency in labor market transactions, and measuring WIA performance are in the LMI portfolio.
• Bureau of Labor Statistics (BLS) - The House and Senate bills would increase funding for BLS by approximately a $50 million - some of which is slated for the mass layoff program and Current Employment Survey.
• Veterans Employment and Training Service (VETS) - The House and Senate bills would increase funding for State grants to finance State personnel who assist veterans in their job search, Local Veterans' Employment Representatives (LVER) and Disabled Veterans Outreach Specialists (DVOS). The House report notes the LVERS and DVOPS are located within State Employment Service agencies which are funded by the Employment Service.
Policy Issues
• Dislocated Worker National Reserve - The House and Senate bills would prohibit the use of "reserve" funds for Career Advancement Accounts or Personal Reemployment Accounts. The "reserve" supports National Emergency Grants to respond to mass layoffs, military base closings and natural disasters, activities that cannot be anticipated in formula allocations.
• Duplication of Services - The House bill expresses concern with the extent of the overlap between the core services of the adult, dislocated worker, and youth programs available at local one-stop career centers and State-wide labor exchange services provided by the Employment Service. The Committee encourages USDOL to use of the WIA State planning process to assure that States address their expectations for program integration.
• UI Program Integrity - The House and Senate bills would provide $10,000,000 and make available $40,000,000 to conduct in-person reemployment and eligibility assessments and unemployment insurance improper payment reviews. A portion of these funds would be required to be used for technology-based overpayment prevention, detection and collection infrastructure investments. Both bills expect program integrity activities to save more than $200,000,000 annually in overpayments from the unemployment insurance trust fund. The House and Senate bills also would require the Secretary of Labor to submit interim and final reports on the outcomes achieved through these activities, their associated estimated savings, and identification of best practices that may be replicated.
CONGRESS UNLIKELY TO PASS FISCAL 2009 SPENDING BILLS
• Senate Majority Leader Harry Reid (D, NV) said it is unlikely Congress will pass any of the fiscal year 2009 spending bills this year and that, instead, Congress will approve a Continuing Resolution (CR) to fund the government at current levels until a new administration takes over.
• Senator Reid's comments are in line with those made by House Majority Leaders, who also said this week the fiscal 2009 appropriations process is likely over for the year.
• Although the House was originally intent on moving forward with all of its appropriations measures, the appropriations process came to a halt last month after a partisan dispute arose during the Labor-HHS- Education House markup over a proposed vote on repealing a restriction on offshore oil drilling.
SENATE PLANS MARKUP ON SECOND SUPPLEMENTAL
• With lawmakers looking at another economic stimulus package, also referred to as a second supplemental, to get their election-year priorities funded, Senate Appropriations Committee Chairman Robert Byrd (WV) announced yesterday his Committee would mark up a package next week. House leaders also are interested in moving a second supplemental spending bill -- possibly by the end of July.
• With the appropriations process stalled, Congress is searching for other spending vehicles. Senator Byrd's plan to mark up a supplemental or second stimulus bill next week could serve as an alternative spending measure this fall, and a vehicle for the continuing resolution to fund most government spending into the new fiscal year. Senate floor action on a second stimulus bill probably would have to wait until September as Congressional leaders have scheduled the target adjournment date for Sept. 26th.
• As the economy has continued to shed jobs, lawmakers have called for a stimulus package to make needed improvements for highways and bridges, provide better public transportation and lower energy prices.
• A group of 30 Senators, led by Herb Kohl (WI), Maria Cantwell (WA) and Susan Collins (ME) are supporting a restoration of the $250 million rescission to WIA programs.
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