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 |
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|
State Expenditures Cash Fund |
-$240,000 |
-$240,000 |
FTE Position Change |
0.0 FTE |
0.0 FTE |
Other State Impact: None identified |
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Effective Date: Ninety days after adjournment unless a referendum petition is approved |
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Appropriation Summary for FY 1999-2000: None required |
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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