COVID-19: Unemployment Insurance for Workers Impacted by COVID-19

Mar 23, 2020 - In August, President Trump authorized the distribution of disaster relief funding to states to provide extra UI benefits. In December, the Coronavirus Response and Relief Supplemental Appropriations Act re-instituted some enhanced UI benefits covering January 1, 2021 through March  14, 2021.
https://lao.ca.gov/Publications/Report/4208

The 2021-22 Budget: Interest Payment on Federal Unemployment Insurance Loan

Feb 10, 2021 - As of February 2021, the state has received $18. 5  b illion in federal UI loans to cover state UI benefit costs. (This state debt is only related to paying regular state UI benefits. The state does not need to borrow to pay for the temporary benefit increases and extensions that the federal government enacted during the pandemic because these benefits are 100  p ercent federally funded.)
https://lao.ca.gov/Publications/Report/4360

Repaying the State’s Federal Unemployment Insurance Loan

May 26, 2021 - Repaying the State’s Federal Unemployment Insurance Loan May 26, 2021 Repaying the State ’s Federal Unemployment Insurance Loan The Governor ’s 2021 ‑22 May Revision budget proposes $36  million General Fund to pay the first, partial payment on the state ’s outstanding federal Unemployment Insurance (UI) loan and proposes to direct $1.1  billion in federal American Rescue Plan (ARP) Act funds to pay down a portion of the outstanding loan.
https://lao.ca.gov/Publications/Report/4442

The 2022-23 Budget: State Payments on the Federal Unemployment Insurance Loan

Feb 15, 2022 - See our May 2021 report for a detailed overview of the state’s UI system. Brief Overview of UI UI Program Assists Unemployed Workers. Overseen by the Employment Development Department (EDD), the UI program provides weekly payments to workers who lost their jobs through no fault of their own.
https://lao.ca.gov/Publications/Report/4543

The 2021-22 May Revision: Golden State Stimulus 2

May 18, 2021 - As of March  2021, more than 80  percent of unemployed workers live in households with below-average annual income. Unprecedented Federal Relief Has Mitigated Pandemic ’s Impacts. As illustrated in the Figure  1 below, federal relief programs have provided over $150  billion of temporary assistance to Californians during the pandemic, including: Unemployment Insurance (UI).
https://lao.ca.gov/Publications/Report/4435

The 2022-23 Budget: Assessing Proposals to Address Unemployment Insurance Fraud

Feb 15, 2022 - Same tool used in January 2021 to suspend 1.1  million claims. Identity Risk Analytics. Thompson Reuters software contract to allow EDD to review new UI claims daily instead of weekly. Aim of more frequent review is to stop fraud.
https://lao.ca.gov/Publications/Report/4542

State Options to Expand Unemployment Benefits

Apr 9, 2020 - When this occurs, the state receives federal UI loans to continue paying out benefits. Once the economy recovers, the state and employers repay the federal UI loans. Increased UI Benefits Under Federal COVID-19 Relief Package.
https://lao.ca.gov/Publications/Report/4219

Revisiting the Unemployment Insurance Trust Fund Insolvency

Sep 30, 2016 - Employers pay both state and federal UI payroll taxes. State UI taxes are deposited into the state ’s UI trust fund to pay for benefits to unemployed workers. Federal UI taxes are typically used to pay for certain costs other than state benefit payments, such as program administration.
https://lao.ca.gov/Publications/Report/3503/1

Revisiting the Unemployment Insurance Trust Fund Insolvency

Sep 30, 2016 - California employers are currently subject to increased federal UI taxes for this reason. State UI Tax Is Experience-Rated, While Federal UI Tax Is Not. As described in our second post , state UI tax schedules require relatively higher tax rates for employers whose former employees disproportionately receive UI
https://lao.ca.gov/Publications/Report/3503/2

Revisiting the Unemployment Insurance Trust Fund Insolvency

Sep 30, 2016 - State UI tax schedules also require relatively higher tax rates for employers whose employees disproportionately receive UI benefits, in an attempt to allocate the costs of UI benefits to those employers whose employees benefit the most from UI.
https://lao.ca.gov/Publications/Report/3503