1996-02-09                     House Journal                      Page 2691
HB 483                                                                       
the wage base would raise the maximum benefit amount from $212 to              
$238 in 1997.  The average cost to employers in the year 2000 will be          
approximately one dollar per employee per week.                                
                                                                               
Thirty-five states use a flexible benefits standard driven by changes in       
the average weekly wage.  The advantage of such a system is that it            
integrates the benefit standard into the self-adjusting unemployment           
trust fund formula, which is directly tied to the performance of the           
state's economy.  As average wages rise, the standard for                      
unemployment insurance benefits keeps pace in terms of income                  
replacement.  If wages fall, as they did during the 1986-1987                  
recession, the maximum weekly benefit decreases, and the employer              
tax burden decreases.                                                          
                                                                               
I want to emphasize that this is a modest proposal.  The bill would            
raise Alaskas wage replacement less than one percent.  While not               
enough to change our wage replacement ranging among the states, this           
small change would provide a measure of additional security to                 
Alaskas average wage earners and help slow the erosion of purchasing           
power during hard times.                                                       
                                                                               
As we work together to strengthen Alaska's economy to provide                  
quality jobs for Alaska's families and to move certain low-income              
people from welfare to work, we must ensure that there is an adequate          
safety net in place to allow unemployed workers sufficient finances to         
remain in their homes, in their communities, and in Alaska until they          
are reemployed.                                                                
                                                                               
I urge your support of this important legislation as a matter of fairness      
and equity for Alaska workers and businesses.                                  
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor                                                                 
                                                                               
                                                                               
HB 484                                                                       
HOUSE BILL NO. 484 by Representatives Therriault and Kelly,                    
entitled: