2001-01-16                     House Journal                      Page 0089
HB 58                                                                                             
HOUSE BILL NO. 58 by the House Rules Committee by request of                                        
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the calculation and payment of unemployment                                
     compensation benefits; and providing for an effective date."                                   
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
Finance Committees.                                                                                 
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Labor & Workforce Development                                                    
2.  Fiscal, Dept. of Administration/Various Depts.                                                  
                                                                                                    
The Governor's transmittal letter dated January 12, 2001, appears                                   
below:                                                                                              
                                                                                                    
"Dear Speaker Porter:                                                                               
                                                                                                    
Alaska's economy includes many seasonal industries with employees                                   
who rely on their unemployment benefits to fill the gaps between                                    
times of work.  The current rate of unemployment insurance payments                                 

2001-01-16                     House Journal                      Page 0090
falls woefully short in helping families cover living expenses.                                     
Alaska's unemployment insurance provides the lowest percentage of                                   
the state's average weekly wage of any state.  Our maximum weekly                                   
benefit amount of $248 ranks 50th of the 50 states.                                                 
                                                                                                    
To correct this inadequacy, I am transmitting this bill to increase                                 
unemployment insurance benefits and then index the benefits to the                                  
state's average weekly wage, so that future adjustments would be                                    
automatic and synchronized to the state's economy.                                                  
                                                                                                    
Under this bill, the maximum weekly benefit amount would increase                                   
January 1, 2002, to $284.  Those earning $31,250 or more per year                                   
would be eligible for this maximum benefit.  A year later, the                                      
maximum weekly benefit amount would be indexed to the average                                       
weekly wage in the state for the preceding fiscal year, set at fifty                                
percent of that wage.  Based on current projections, the maximum                                    
weekly benefit amount in 2003 would be $320 for those claimants                                     
who earned $35,500 or more.                                                                         
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely,                                                         
                                /s/                                                                 
                                Tony Knowles                                                        
                                Governor"