SENATE BILL REPORT

SJM 8014

As Reported By Senate Committee On:

Commerce & Trade, February 14, 2003

Brief Description: Requesting reconsideration of the Resource Justification Model.

Sponsors: Senators Honeyford, Franklin, Mulliken, Keiser and Hewitt.

Brief History:

Committee Activity: Commerce & Trade: 2/14/03 [DPS].

SENATE COMMITTEE ON COMMERCE & TRADE

Majority Report: That Substitute Senate Joint Memorial No. 8014 be substituted therefor, and the substitute joint memorial do pass.

      Signed by Senators Honeyford, Chair; Hewitt, Vice Chair; Franklin, Keiser and Mulliken.

Staff: Elizabeth Mitchell (786-7430)

Background: The U.S. Department of Labor recently implemented a new way of budgeting for the state administrative costs of the unemployment insurance program. This new system is called the Resource Justification Model. The budget planning targets for federal fiscal year 2003, recently released by the Department of Labor, would reduce Washington's allocation by $4.7 million from the fiscal year 2002 allocation.

Summary of Substitute Bill: Congress is petitioned to encourage the U.S. Department of Labor to set aside the Resource Justification Model for fiscal year 2003 while additional evaluations of this system are undertaken, and to seriously consider the Employment Security Department's revised submittal under the Resource Justification Model.

Substitute Bill Compared to Original Bill: The original bill was not considered.

Appropriation: None.

Fiscal Note: Not requested.

Testimony For: This joint memorial would encourage the Department of Labor to allocate more unemployment insurance funds to Washington State.

Testimony Against: None.

Testified: Marc Baldwin, Employment Security Department (pro).