Minnesota Unemployment Insurance Program

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Minnesota Unemployment
Insurance Program
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Unemployment Insurance Program

• The Unemployment Insurance (UI) program is a
  federal/state program.
• Purpose of UI
• To provide workers who are unemployed through
  no fault of their own a temporary partial wage
  replacement to assist the unemployed worker to
  become reemployed Minn.
  Stat. 268.03 subd.1
• UI administrative costs are paid by a federal
  grant which is funded by a federal tax on
  employers.
• Minnesota UI law must conform to federal law.

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UI Benefits

• New Benefit Applications and Reactivations (week
  ending 10/17/09 vs. 10/18/08)
• 10/17/09 8,894 (5,099 new)
• 10/18/08 6,145 (4,010 new)
• First payment made in less than 21 days from
  effective date of application (3rd qtr. 09 vs.
  3rd qtr. 08)
• 3rd qtr. 09 97
• 3rd qtr. 08 95
• National average 82
• Applicants in active status requesting benefits
  (week ending 10/17/09 vs. 10/18/08)
• 10/17/09 170,124
• 10/18/08 59,380

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UI Benefits

• Total Weekly UI benefits paid (week ending
  10/17/09 vs. 10/18/08))
• 10/17/09 51,563,143
• 10/18/08 16,097,486
• Applicants exhausting all benefits available
• Week ending 9/26/09 528
• Week ending 10/03/09 536
• Week ending 10/10/09 508
• Week ending 10/17/09 518

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Sequence of UI Programs
2(b). High Unemployment Rate Tier II EUC
3(b)High Unemployment Rate EB
26 Weeks
20 Weeks
7 Wks
13 Weeks
13 Weeks
1. Regular State UI
2(a). Emergency Unemployment Compensation (Tier
I EUC)
3(a). Federal/State Extended Benefits (EB)

• All UI applicants start in the Regular State UI
  program. For most applicants this program
  provides up to 26 weeks.
• Congress has enacted a two-tiered Emergency
  Unemployment Compensation extension EUC
• Tier I EUC provides up to 20 weeks of benefits
  for all states.
• Tier II EUC provide an additional 13 weeks for
  states with an average unemployment rate for the
  past 3 months of 6.0 or higher.
• Federal/State Extended Benefits (EB) has existed
  since 1970. It triggers on and off based on the
  states unemployment rate.
• Tier I provides up to 13 weeks if Minnesotas
  average unemployment rate for the past 3 months
  was 6.5 (or higher).
• Tier II provide up to an additional 7 weeks if
  Minnesotas average unemployment rate for the
  past 3 months was 8.0 or higher.

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UI Program Customer Perspective

• Automation and Self-Service
• 80 of new applications, reactivations and weekly
  requests are done on the Web
• 95 of employer transactions are done on the Web

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UI Program Customer Perspective

• Staff Assisted Telephone Calls (week ending
  10/17/09 vs. 10/18/08))
• 10/17/09 25,660
• 10/18/08 15,926
• Average wait time 10/17/09 304
• Average wait time 10/18/08 417

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UI Taxes

• UI Taxes (year ending 6/30/09)
• 124,000 active taxpaying employers
• 848 Million In UI Taxes Collected put in UI
  Trust Fund (11 decrease from state fiscal year
  2007)

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UI Program Updates

• American Recovery and Reinvestment Act (ARRA)
• Provided 130 million dollars trust fund relief
• Waives interest for states borrowing through
  2010
• Extends duration of benefits significantly and
  increases the weekly amount (25 per week)
• Fully funds extended benefits
• Provides modernization funding of 9.3 million to
  implement mandatory law changes
• 2009 UI Legislation
• American Recovery Reinvestment Act Changes
• State extension (for applicants not eligible for
  federal extension)
• Increase flexibility of Shared Work Program
• 2010 UI Policy Challenge
• Trust fund solvency trust fund balance on
  10/17/09 (143,787,721) expected to be over 1
  billion in deficit in early 2011

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Contact

• www.uimn.org
• Kathy Nelson, Director
• Unemployment Insurance
• 651-259-7225 or Kathy.Nelson_at_state.mn.us

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Business and Community Development
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Summary of Presentation

• Legislative highlights
• Federal stimulus and regular funding
• What to expect in the future?

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Legislative Highlights Relative to Business and
Community Issues

• Policy
• Counties now eligible for Greater MN Business
  Development Public Infrastructure Program
• Bioscience Public Infrastructure to include
  higher education institutions
• Revisions to Contamination Cleanup Grants

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Legislative Highlights Relative to Business and
Community Issues

• Funding
• New funds for Office of Science Technology, and
  expectation for state policy development
• Some pass-through recipients were funded
• New program accountability measure requirements
  for DEED programs and external recipients
• Designated economic development projects
• Green Enterprise Assistance

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BCD and Public Facilities Authority Funding Since
July 2007

• Funding
• Regular program funding
• ARRA added in FY 09/10
• Total in Arrowhead (Region 3) 149,741,305

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BCD Funding - Business Development Public
Infrastructure Grants
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BCD Funding - Contamination Clean Up Grants
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BCD Funding Redevelopment Grant Program
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BCD Funding - JOBZ Projects
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BCD Funding - 21st Century Minerals Fund
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BCD Funding - Minnesota Investment Fund Biomass
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BCD Funding - Small Cities Development Program
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BCD Funding - Small Business Development
Centers
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BCD Funding - Small Cities ARRA
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BCD Funding - Special Appropriations
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BCD Funding - Disaster Recovery
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Water Pollution Control Revolving Fund (PFA)
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Drinking Water Revolving Fund (PFA)
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Drinking Water Disadvantaged Communities (PFA)
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Wastewater Infrastructure Fund (PFA)
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Small Community Wastewater Technical Assistance
(PFA)
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Special Appropriations (PFA)
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What to Expect in the Future?

• Green/renewable focus
• Pressure for investment tax credits
• Bonding/capital budget year

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Contact

• www.PositivelyMinnesota.com
• Mark Lofthus, Director
• Business and Community Development
• 651-259-7432 or Mark.Lofthus_at_state.mn.us

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Workforce Development
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Workforce Development

• Workforce Development Programs including ARRA
• Future Opportunities Challenges

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Workforce Development Legislative Highlight

• Workforce Development special assessment fee .1
  to .12 on UI taxable wages.
• Effective July 1, 2009
• Ends June 30, 2011

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Federal Resources WIA

• Dislocated Worker July 1, 2009 to June 30, 2010
• Statewide allocation - 20,054,286
• Northeast Minnesota 713,531
• Expended 270,753
• Currently serving 300

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Federal Resources ARRA

• Dislocated Worker February 14, 2009 to June 30,
  2011
• ARRAStatewide allocation - 20,963,288
• Northeast Minnesota 871,654
• Expended 473,137
• Currently serving 143

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State Resource Workforce Development Fund

• Dislocated Worker July 1, 2009 to June 30, 2010
• Statewide allocation - 15,914,000
• Northeast Minnesota 943,700
• Expended 383,522
• Currently serving 454

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Federal Resources WIA

• Adult July 1, 2009 to June 30, 2011
• WIA - Statewide allocation 12,099,930
• Northeast Minnesota 814,876
• Expended 183,970
• Currently serving 228

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Federal Resources - ARRA

• Adult - February 14, 2009 to
• June 30, 2011
• Statewide allocation 6,952,045
• Northeast Minnesota 468,189
• Expended 141,254
• Currently serving 42

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Federal Resources WIA

• Youth July 1, 2009 to
• June 30, 2010
• Statewide Allocation - 13,837,056
• Northeast Minnesota 923,983
• Expended 303,375
• Currently serving 250

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Federal Resources ARRA

• Youth February 14, 2009 to
• June 30, 2011
• Statewide Allocation - 17,789,172
• Northeast Minnesota 1,250,738
• Expended 873,891
• Served 256

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State Resources Workforce Development Fund

• MN YouthStatewide Allocation Summer 2009
  
• Statewide allocation - 3,500,000
• Northeast Minnesota 200,358
• Expended 72,265
• Served 105

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Federal Resources Wagner-Peyser

• Job Service July 1, 2009 to
• June 30, 2010
• Statewide Allocation 12,250,556
• - Funds 135 staff state-wide
• - Funds MinnesotaWorks.Net
• - Funds Migrant Seasonal Farm-
• worker staff

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Federal Resources Wagner-Peyser

• ARRA February 14, 2009 to September 30, 2010
• Added 85 staff statewide (1 in Grand Rapids
  and 1 in Virginia)
• Resume writing, interviewing skills, resource
  room assistance etc.
• Placement activities
• 23,394 individuals attended one or more workshops
  since March

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ARRA Serving Disability Population

• Services for Blind
• 586,345 Older Blind Statewide
• 1,344,892 Statewide
• Independent Living Grants
• 242,913 Statewide
• Vocational Rehabilitation Blind
• 6,344,892 Statewide
• (Match was not required)

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ARRA Related Projects From State Administrative
Funds

• FastTRAC ARRA
• Statewide Allocation 1,500,000
• Northeast Minnesota 118,500
• On-the-job Training ARRA Statewide Allocation -
  1,000,000
• Northeast Minnesota 109,410
• 7 counties qualified
• Youth - 800,000

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Future Opportunities/Challenges

• 60 percent of all new jobs will require some type
  of post-secondary education
• Working learners
• Come to breakout to hear more!

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Contact

• www.PositivelyMinnesota.com
• Bonnie Elsey, Director
• Workforce Development
• 651-259-7563 or Bonnie.Elsey_at_state.mn.us

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