ASSEMBLY RESOLUTION No. 181

STATE OF NEW JERSEY

INTRODUCED DECEMBER 11, 1997

By Assemblymen GARRETT and BARNES

An Assembly Resolution memorializing Congress to take action regarding the administration and financing of the unemployment insurance and employment services system.

Whereas, The unemployment insurance and employment services system is currently financed and administered under the provisions of an outmoded federal-state agreement which has been in effect since the inception of the system in 1935, and over the years serious problems have developed with the bifurcated agreement; and

Whereas, In 1996, only 58 percent of the $5.8 billion in federal unemployment tax collections was actually returned to the states in federal grants to administrate state unemployment insurance and employment services offices, meaning that employers were overcharged by more than two billion dollars, depriving the private sector of moneys for reinvestment, hiring more workers or providing pay increases; and

Whereas, The bifurcated system results in duplicative and unnecessary paperwork, and its unfair and arcane allocation formulae result in most states, including New Jersey, receiving less in federal grant revenues than their employers pay in unemployment insurance taxes; and

Whereas, Some of the unused federal unemployment insurance funds are being used to offset the federal deficit instead of being applied to the use for which they were dedicated by law; and

Whereas, Unemployment taxes collected from the states become federal funds subject to federal rules, restrictions and requirements that hinder efficient delivery of services; now, therefore;

    Be It Resolved by the General Assembly of the State of New Jersey:

    1. The Congress of the United States is hereby respectfully requested to take such action as may be necessary to turn over control of the financing and administration of unemployment insurance and employment services to the states and to provide the states with the flexibility to determine how best to insure their workers and provide employment services.

    2. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested by the Clerk, shall be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, the majority and minority leaders of both Houses of Congress, and every member of Congress elected from this State.

STATEMENT

    This resolution memorializes the Congress of the United States to take such action as may be necessary to turn over control of the financing and administration of unemployment insurance and employment services to the states and provide the states with the flexibility to determine how best to insure their workers and provide employment services.

Memorializes Congress to give states control of unemployment insurance and employment services.