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WAYS AND MEANS STAFF VISIT EMPLOYMENT SERVICE OFFICE
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What would you do if you learned that the Ways and Means Staff, the terrific folks who are helping us move HR 3684 forward, were interested in learning everything about the Employment Service? Ohio jumped at the chance to talk to these critical advocates for our system about how well it functions.
We asked if we could meet with them to talk about the Employment Service and were excited that they not only agreed to meet, but also wanted to |
visit an office. In addition, ICESA agreed to participate and provide staffing for the office visit.
On August 18th, Debi Bowland and Gay Gilbert from Ohio, ICESA staff Rich Hobbie, Kate Cashen, and Sheila Tolliver, Texas' Bill Lattimer, and two individuals from the Maryland offices that were visited met with Ron Haskins and Matt Weidinger for the better part of an hour and a half on the incredible accomplishments of the Employment Service. They were |
extremely receptive and asked lots of questions and spent the following morning touring the employment security office in Frederick, Maryland as well as the human services office at which an Employment Service worker is permanently stationed.
Because Employment Services look very different in different states, the Coalition and ICESA will be looking for additional opportunities for the Ways and Means staff to gain exposure to the Employment Service. |
OBES/DOL HOLD DIALOGUE ABOUT FUTURE
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(L-R) Debi Bowland speaks. OBES Deputy Administrator Gay Gilbert, who moderated the dialogue, and panelists Grace Kilbane, Craig Burford, Andrew Doehrel, Gary DiCeglio and Steve Telego listen. |
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Ohio Bureau of Employment Services (OBES) and U.S. Department of Labor officials held a dialogue with Ohio business, labor and community leaders on unemployment insurance and reemployment services on Monday, August 17, 1998, in Columbus, Ohio.
OBES Administrator Debi Bowland hosted the dialogue discussing state and federal roles in employment security, funding for state employment programs, eligibility for unemployment compensation, and other issues. Bowland was joined by top officials of the U.S. Department of Labor: Ray Bramucci, newly appointed U.S. Assistant Secretary of Labor for the Employment and Training Administration (ETA), who participated as an audience member and responded to several questions; and Grace A. Kilbane, Director of the |
Unemployment Insurance Service, ETA, who spoke from the podium and also answered questions. Byron Zuidema, US DOL Regional Administrator for Region V, also attended.
Other panel participants were: Craig Burford representing Ohio Senate President Pro Tempore Robert Cupp; Andrew Doehrel, President of the Ohio Chamber of Commerce and Co-Chair of the Unemployment Compensation Advisory Council (UCAC); Gary DiCeglio representing |
William Burga, President of the Ohio AFL-CIO and Co-Chair of the UCAC; and Steve Telego, Vice Chair of the Ohio Job Service Employer Committee.
The Ohio dialogue was one of several public forums being held around the country examining unemployment insurance and employment service programs. DOL plans to use infor-mation gained for long-range planning. |
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Comparison of Employment Security Bills Still Available
Shortly after the Coalition's FUTA reform bill was introduced by Congressman Clay Shaw, the Administration introduced its own FUTA bill. This measure, HR 3697, takes a very different approach to FUTA. It would, in fact, continue the temporary 0.2% surcharge and potentially lead to large tax increases for employers across the country. A side-by-side analysis of the key provisions of both bills has been prepared.
If you have not already received a copy, you may download a copy from our web site. |
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 Coalition for
Employment Security
Financing Reform
April1998
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Kentucky and Wisconsin
Governors join the effort for
FUTA reform
The following excerpts are from letters to Ohio Governor George Voinovich after his appeal to other governors in support of the FUTA Coalition proposal. |
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On the Hill
FUTA
Reform is
now HR 3684 |
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The Coalition's proposal for reforming the FUTA financing system is now in the legislative hopper. It was introduced on April 1, 1998, as HR 3684.
The prime sponsors of the bill include three prominent members of the powerful Ways and Means Committee: Rep. Clay Shaw of Florida (who also chairs the Human Resources Subcommittee), Rep. Mac Collins of Georgia and Rep. Rob Portman of Ohio. The fourth prime sponsor is Rep. John Sununu of New Hampshire, who has a seat on the House Budget Committee. Additional sponsors are expected to sign on in the near future and there have also been a number of expessions of support from members of the Senate who wish to carry the bill in that chamber.
Introduction of the bill came after many weeks of fine tuning of the proposal to ensure that it would not have scoring problems when applied to the federal deficit. The alterations did not change the basic approach of the bill, but phased some of the elements in over the next few years to lessen the impact on the federal deficit. |
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"I am pleased to inform you of my full and enthusiastic support for the reform initiative.
Kentucky has for too long been among those many states which have received far too little return on the federal unemployment taxes levied on our employers. As in Ohio, Kentucky's ability to deliver effective employment security and workforce development services has been hampered by the dwindling supply of federal funding which we
Governor
Paul Patton
have received over the years, even as our employers have continued to underwrite the federal deficit. It is for this reason that Kentucky has long been involved in crafting and critiquing the reform proposal, and I am gratified that the resulting plan is a model of fairness for all states, for the nation's employers and workers, and for our federal partner. It restores the proper balance to the federal-state relationship which has been the hallmark of the economic security system since its inception, simplifies reporting and reduces the tax burden on our business community, and gives states the resources and flexibility in local decision-making which will best ensure that we meet the differing needs of our citizens." |
"Wisconsin shares the concerns outlined in your letter and strongly supports the concept of turning over the responsibility for collection of the federal unemployment tax to the states. We are one of the 42 states and
Governor
Tommy Thompson
jurisdictions who receive less than our employers pay into the system. The current funding process and tax collection system restricts the activities we carry out and how we administer the Unemployment Insurance and Employment Security programs.
Over the last few years we have reviewed and discussed a number of proposals to shift responsibility for collection of the FUTA tax from the federal government to the states. Some of the proposals have called for a complete devolution of employment security funding and administration while others, such as the one outlined in your letter, call for a reduced federal role.
We believe the proposal outlined in the pamphlet accompanying your letter would accomplish the objectives of the UI program and the purpose of the employer taxes." | | |
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Questions about FUTA Reform and Veterans Services
Q. Under the proposal of the Coalition for Employment Security Financing Reform, state legislatures (instead of Congress) will appropriate funds for veterans' employment service in states. What effect will that have?
A. The Coalition's proposal maintains veterans' programs. The Local Veteran Employment Representative (LVER) and Disabled Veteran Outreach (DVOP) programs will be maintained, as Title 38 of the US Code requires. State legislatures will have to follow Title 38.
Q. We fund DVOP and LVER staffing today from Congressional appropriations. How does the Coalition's proposal deal with that?
A. DVOP and LVER positions are not now fully funded. By getting more funds to states, the Coalition's proposal provides more funding available for veterans' employment service in states. State legislatures will be mandated to appropriate funds for veterans' programs under the Federal requirement of Title 38. Under the Coalition's proposal, full funding for DVOP and LVER staffing becomes possible.
Q. Under the Coalition's proposal, what assurances are there of continued state support for veterans' employment programs?
A. The Coalition's proposal makes no changes in any laws providing veterans' employment service. The Coalition's proposal brings decision-making closer to constituents by giving funding authority to states. State legislators often are much closer to voters than are members of Congress. Veterans' organizations, employers and job-seekers alike can work directly with their state legislators.
Q. If we enact the Coalition's reform proposal, will veterans' employment programs remain national programs?
A. All employment security programs remain national programs under the Coalition's proposal. The national programs include unemployment insurance, job service, labor market information and Veterans' reemployment help. Funding provided by the Coalition's proposal strengthens these programs, while maintaining a national system.
Q. In the Coalition's proposal, is 2% for national programs adequate for veterans' programs?
A. The Coalition wants adequate technical assistance for national programs. Using 1995 numbers, Department of Labor national programs received an estimated $170 million in FUTA funding. The Coalition's proposal gives a dedicated 2% of FUTA revenue for national programs. This would provide approximately $120 million for Department of Labor staffing of national programs. Budget and appropriation recommendations for national veterans' programs would be the responsibility of the US Department of Labor, just as it is today. Available funds would grow 2 to 3% a year, as FUTA revenues grow. |
