Colorado Legislative Council Staff

STATE

FISCAL IMPACT

Drafting Number:

Prime Sponsor(s):

LLS 99-0364

Sen. Musgrave

Rep. May

Date:

Bill Status:

Fiscal Analyst:

January 16, 1999

Senate State Affairs

Will Meyer (303-866-4976)

 

TITLE:            CONCERNING AN INCREASE IN THE MINIMUM BASE PERIOD WAGE ELIGIBILITY LEVEL REQUIRED TO RECEIVE UNEMPLOYMENT BENEFITS.



Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

Cash Fund


 


 

State Expenditures

Cash Fund


-$240,000


-$240,000

FTE Position Change

0.0 FTE

0.0 FTE

Other State Impact: None identified

Effective Date: Ninety days after adjournment unless a referendum petition is approved

Appropriation Summary for FY 1999-2000: None required

Local Government Impact: None identified



Summary of Legislation


            This bill changes the criteria for eligibility to receive unemployment benefits under the provisions of the Employment Security Act, Division of Employment and Training, Department of Labor and Employment. The bill requires an individual to have been paid not less that 40 times the weekly amount or $2,500, whichever is greater, before the individual is eligible to receive benefits. Under current law, the minimum base period is $1,000. Under this bill, it will increase to $2,500.



State Revenues


            For FY 1999/00, it is estimated that UI fund revenues will total $260,661,000. It is assumed that the amount of benefits excluded under this bill will not affect the employer contributions in any significant or predictable way. Though a few individual employer accounts may be affected, there is no way to predict which employers would now experience a tax impact, or any minor decrease in revenue. Therefore, this bill is assessed as having no revenue impact.





State Expenditures


            For FY 1999/00, it is estimated that the UI fund will pay out benefits totaling $184,894,000.

This bill will decrease the amount of benefits paid out of the UI fund by an estimated $240,000 a year beginning in FY 1999/00.



State Appropriations


            This fiscal note implies that there should not be any change in the appropriations to the Department of Labor and Employment. Benefits' expenditures out of the UI fund are not appropriated by the General Assembly.



Departments Contacted


            Labor and Employment