Minnesota Unemployment Insurance Program

1
Minnesota Unemployment
Insurance Program
2
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.

2
3
UI Program Volume

• Benefit Applications and Requests (year ending
  6/30/09)
• 336,266 Applicants Filed New Applications for
  Benefits
• 6.7 Million Weekly Requests for Payments
• Currently about 180,000 Requests Per Week
• Total Benefits Paid (year ending 6/30/09)
• 1.9 Billion
• 156 Increase Over Year ending 6/30/07
• Weekly Payments
• Currently about 50 Million per Week
• Previous Year Average was 14 Million a Week
• Taxes (year ending 6/30/09)
• 12.5 Million Wage Records Reported
• 120 Billion In Wages Reported
• 848 Million In Taxes Collected (11 decrease
  from state fiscal year 2007)

3
4
UI Program Customer Perspective

• Automation and Self-Service
• 80 of new application and weekly requests on the
  Web
• 95 of employer transactions on the Web
• Nearly all payments Tax and Benefits are made
  electronically
• Staff Mediated Service
• Approximately 1 million staff-assisted phone
  calls per year
• Average wait time to reach an agent is 2 to 3
  minutes
• 256,000 Determinations of Eligibility Issued by
  Staff

4
5
UI Program Updates

• American Recovery and Reinvestment Act (ARRA)
• Provided 130 million dollars of trust fund
  relief conditionally
• Waives interest for states borrowing
• 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 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

5
6
UI Program Extensions
26 Weeks
20 Weeks
7 Wks
13 Weeks
13 Weeks
Emergency Unemployment Compensation
Federal/State Extended Benefits
Regular UI

• It is common for Congress to extend benefits
  during a recession.
• Congress has acted to create a two-tiered
  emergency unemployment compensation extension
  EUC.
• Congress has also added an additional seven weeks
  to the pre-existing Extended Benefits Program.
• Unemployed workers in Minnesota are currently
  eligible for up to 79 weeks of benefits.

6
7
Contact

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

8
Business and Community Development
9
Summary of Presentation

• Legislative highlights
• Federal stimulus opportunities
• What to expect in the future?

10
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
• Extension of JOBZ for a specific project no
  other JOBZ changes
• Creation of Economic Development Strategy Working
  Group to examine best practices and strategies

11
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

12
Federal Stimulus Opportunities

• State (DEED)
• State (Commerce)
• Federal Programs
• SBA
• USDA Rural Development
• Recovery Zone Bonds
• Broadband

13
What to Expect in the Future?

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

14
Contact

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

15
Workforce Development
16
Workforce Development

• 2009 Legislative Highlights
• American Recovery and Reinvestment Act (ARRA)
• Future Opportunities Challenges

10
17
2009 Legislative Highlights

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

18
Performance Accountability

• DEED shall develop a uniform accountability
  report for all economic development workforce
  development programs funded by state or federal
  money.
• Sample report and formula for ROI submitted by
  October 15, 2009.
• First report, December 31, 2010.

19
American Recovery Reinvestment Act

• ARRA Dislocated Worker (DW)
• 20,963,288
• Twin Cities Metro 7,162,527
• WIA PY2009 DW
• 20,054,286
• Twin Cities Metro 5,859,862
• State DW FY10 DW
• 15,914,000
• Twin Cities Metro 7,750,117
• Counties of Anoka, Carver, Dakota, Hennepin,
  (including Minneapolis), Scott, Washington,
  Ramsey (including St. Paul)

20
National Emergency Grant

• National Emergency Grant
• 6,088,800
• Twin Cities Metro 1,905,974 and 122,830
• Counties of Anoka, Carver, Dakota, Hennepin,
  (including
• Minneapolis), Scott, Washington, Ramsey
  (including St. Paul)

21
American Recovery Reinvestment Act

• ARRA Adult
• 6,952,045
• Twin Cities Metro 1,742,516
• WIA Adult
• 12,099,930
• Twin Cities Metro 3,454,403
• Counties of Anoka, Carver, Dakota, Hennepin,
  (including
• Minneapolis), Scott, Washington, Ramsey
  (including St. Paul)

22
American Recovery Reinvestment Act

• ARRA Youth
• 17,789,172
• Twin Cities 5,333,962
• WIA Youth PY09
• 13,837,056
• Twin Cities 3,940,468
• MN Youth SFY10
• 3,500,000
• Twin Cities 1,557,547
• Counties of Anoka, Carver, Dakota, Hennepin,
  (including Minneapolis),Scott, Washington,
  Ramsey (including St. Paul)

23
American Recovery Reinvestment Act

• ARRA FastTRAC
• 1,500,000
• Twin Cities Metro 505,500
• ARRA on-the-job training
• 1,000,000
• Twin Cities Metro 168,243
• 1 county qualifies
• Counties of Anoka, Carver, Dakota, Hennepin,
  (including Minneapolis), Scott, Washington,
  Ramsey (including St. Paul)

24
American Recovery Reinvestment Act

• Job Service ARRA
• 6,895,090
• Hired 82 staff state-wide
• Creative Job Search Workshops for Unemployment
  Insurance Recipients
• Placement activities
• Served 7,367 UI claimants in workshops since
  March
• JS PY09
• 12,250,556
• 135 staff

25
American Recovery Reinvestment Act

• Services for Older Blind
• 586,345
• Independent Living Grants
• 242,913
• Vocational Rehabilitation Blind
• 1,344,892
• 6,344,892

26
Future Opportunities/Challenges

• Collaborative, competitive grants
• Investment in post-secondary education
• Working learners
• Come to breakout to hear more!

27
Contact

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

28
www.PositivelyMinnesota.com
Follow DEED on Twitter
http//twitter.com/PositivelyMN