WHEREAS:

The employment security system, which consists of the unemployment insurance and employment service programs, was set up as a federal-state partnership in the 1930’s to provide workers with wage replacement income and assistance finding new jobs during spells of unemployment and to help employers find qualified workers; and

WHEREAS:

Despite sizable surpluses in the federal employment security trust fund, the federal government has underfunded both unemployment insurance and employment service operations for years, causing office closings and reduced staffing levels; and

WHEREAS:

An internal Department of Labor study estimates a funding shortfall of $306 million for unemployment insurance operations; and

WHEREAS:

The percent of unemployed workers receiving unemployment benefits has dropped to less than one-third, and 22 states do not have adequate funds in their state benefit trust funds according to Department of Labor standards; and

WHEREAS:

At the urging of a coalition of states and business organizations, legislation has been introduced that would transfer control of the funding for employment security operations from the federal government to the 50 states; and

WHEREAS:

The legislation allows states to privatize both unemployment insurance and employment service operations and will create new authority for states to underfund administrative operations in order to hold down or reduce state employer taxes; and

WHEREAS:

The legislation also eliminates the national insurance feature of the current federal-state partnership and exposes individual states and workers to significant financial risk during economic downturns; and

WHEREAS:

The Administration has proposed legislation without devolution which begins to address several important issues, including increasing federal financial support of unemployment insurance operations; enabling more low-wage workers to receive unemployment benefits; revising the federal-state extended benefits program to make it more readily available during recessions; and encouraging states to improve the financial condition of their state trust funds; and

WHEREAS:

The Administration has initiated a national dialogue to discuss ways to strengthen and modernize the employment security system, including both the unemployment insurance and employment services programs.

THEREFORE BE IT RESOLVED:

That AFSCME believes that action must be taken to strengthen the federal-state employment security partnership, to increase federal financial support for employment security operations, to expand the number of unemployed workers who receive unemployment benefits, and to improve the financial condition of state benefit trust funds; and

BE IT FURTHER RESOLVED:

That AFSCME opposes proposals which would facilitate privatization and destroy the employment security federal-state partnership by devolving existing federal authority to the states; and

BE IT FURTHER RESOLVED:

That AFSCME commends the Administration for seeking to bring all of the stakeholders in this crucial economic security system together to discuss ways to improve it and will seek to participate actively in this process; and

BE IT FINALLY RESOLVED:

That AFSCME will seek improvements and increased funding support at the federal and state levels for the employment security system and urges the AFL-CIO to make revitalizing this crucial system for workers a high priority.

SUBMITTED BY:

Gary M. Lonzo, President and Delegate
Carol Heffernan, Secretary
AFSCME Council 24
Wisconsin