Fiscal Note - SB 0055 - Changes Definition of "Work Stoppage" For Unemployment Benefit Eligibility
L.R. NO. 0467-04
#BILL NO. Perfected SCS for SB 55
SUBJECT: Unemployment Benefits
TYPE: Corrected
DATE: February 20, 1997
#To correct bill number
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Unemployment
Insurance
Compensation
Trust Fund $1,249,500 $1,500,000 $1,500,000
General Revenue ($74,970) $90,000 ($90,000)
Total Estimated
Net Effect on All
State Funds $1,174,530 $1,590,000 $1,410,000
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
The Department of Labor & Industrial Relations (DOL), Division of Employment
Security (ES) assumes that the Unemployment Insurance Compensation Trust Fund
could be positively impacted. The proposal would provide for the denial of
unemployment benefits for work stoppage. Based on historical data, ES
estimates a reduction of $1.5 million annually in benefits paid as a result
of labor disputes. This estimate does not take into account the potential
amount of benefits which could have been paid by the National Labor Relations
Board (NLRB) in the past two years. The actual amount would be dependent
upon the number of labor disputes or strikes per year and the findings of the
NLRB. Oversight prorated the savings for FY98.
The Office of Administration (OA), Division of Budget & Planning calculated
the estimated fiscal effect this proposal would have on the Department of
Revenue (DOR). It would be expected that since unemployment benefits are
included in Missouri's adjusted gross income and DOL estimates a reduction in
unemployment benefits, individual income tax collections would reduce. OA
assumes a marginal tax rate of 6%.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
UNEMPLOYMENT INSURANCE
COMPENSATION TRUST FUND
Savings
Department of Labor & Industrial Relations (DOL)
Division of Employment Security (ES)
Reduction in Payment of
Unemployment Benefits $1,249,500 $1,500,000 $1,500,000
ESTIMATED NET EFFECT ON
UNEMPLOYMENT INSURANCE
COMPENSATION TRUST FUND $1,249,500 $1,500,000 $1,500,000
GENERAL REVENUE
Loss
Department of Revenue (DOR)
Decrease in Tax Collections ($74,970) ($90,000) ($90,000)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND ($74,970) ($90,000) ($90,000)
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
This proposal could impact small businesses, depending on the number of
strikes, which could reduce an employer's contributions to the Unemployment
Insurance Compensation Trust Fund.
DESCRIPTION
The proposal would provide that the current definition of stoppage of work
would not be applicable to a strike where the employees in the bargaining
unit initiated the strike by withholding their service and are participating
in the strike. These striking employees would not be eligible for waiting
week credits or benefits during the strike regardless of diminution of work
unless the employer has been found guilty of an unfair labor practice by the
National Labor Relations Board or a federal court for an act or actions
directly related to the bargaining process that resulted in the strike.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Labor & Industrial Relations
Office of Administration
This Fiscal Note is not an official copy and should not be quoted or cited.