OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-5369

AN ACT CONCERNING AN ADJUSTMENT TO THE METHOD FOR DETERMINING THE MAXIMUM WEEKLY UNEMPLOYMENT BENEFIT RATE.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

Labor Dept.

UCF - Uncertain

See Below

See Below

Note: UCF=Unemployment Compensation Fund

Municipal Impact: None

Explanation

The bill alters the methodology by which the maximum unemployment benefit rate is determined. Specifically, the bill changes the formula for deriving the benefit cap from 60% of the average wage paid to the state's production workers to 50% of the average wage of all workers in the state or another method prescribed by the Labor Commissioner. The impact on the Unemployment Compensation Fund (UCF) is uncertain as the bill does not require a single methodology for determining the maximum benefit; thus, the bill may result in a cost, savings, or no impact to the UCF depending on the methodology actually employed.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to annual adjustments in the maximum unemployment benefit rate.