03/23/1993 01:40 PM Senate L&C

  SENATOR KELLY  announced SB 162 EMERGENCY  UNEMPLOYMENT COMP                 
  PROGRAM to be up for consideration.                                          
                                                                               
  JUDY   KNIGHT,   Director,  Employment   Security  Division,                 
  explained  SB  162   allowed  the   state  to  continue   to                 
  participate  in  the  Emergency   Unemployment  Compensation                 
  Program  passed  by Congress  in  1991.   She  reviewed  the                 
  provisions in the bill and  explained that Extended Benefits                 
  is financed half from  Alaska's UI trust fund and  half from                 
  federal receipts.   She  said they  did  not anticipate  any                 
  additional cost associated with the  program if you consider                 
  the total bill.   In fact, there would be  approximately $18                 
  million  in  savings to  the  UI  Trust Fund.    The federal                 
  government  covers   100%  of  the   Emergency  Unemployment                 
  Compensation.    The  State  chose  to participate  in  that                 
  program and not pay extended benefits.                                       
                                                                               
  SENATOR  KELLY asked  what happens if  they don't  pass this                 
  bill.  MS. KNIGHT explained that the State would not receive                 
  the  administrative  dollars that  go  with the  program for                 
  Unemployment Insurance, as well as  all the other employment                 
  and training  provisions.   This program  does significantly                 
  save state funds.                                                            
                                                                               
  SENATOR  KELLY   expressed  his  dissatisfaction   with  the                 
  administration introducing this bill so late in session.                     
                                                                               
  Number 515                                                                   
                                                                               
  SENATOR   RIEGER  wanted   a  response  sometime   from  the                 
  administration on  what the benefit  might be of  putting in                 
  repealers so it wouldn't be a permanent law.                                 
                                                                               
  SENATOR SHARP said he wanted this program to sunset the same                 
  time as the federal program sunsets.                                         
                                                                               
  SENATOR KELLY asked if unemployment  benefits would stay the                 
  same  if this  bill was  enacted.  MS.  KNIGHT said  no they                 
  wouldn't.  She  didn't think it would have any effect on the                 
  unemployment rates that employers pay as long as we continue                 
  participation in the Emergency Unemployment Compensation.                    
                                                                               
  Number 581                                                                   
                                                                               
  SENATOR  SALO moved  to  pass  SB  162 from  committee  with                 
  individual recommendations.  There were no objections and it                 
  was so ordered.