State of Illinois
92nd General Assembly

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 1                          HOUSE RESOLUTION

 2        WHEREAS, Unemployment insurance is  the  bedrock  of  the
 3    social  safety net for workers who have been laid off and are
 4    seeking jobs and is the first line of defense during economic
 5    downturns; and

 6        WHEREAS, Unemployment insurance not only  provides  vital
 7    income  support  to laid-off workers, but also stabilizes the
 8    local, State, and national  economies  because  the  benefits
 9    workers receive are invested back into the community; and

10        WHEREAS,  President  Bush's  proposal  would  destroy the
11    federal-state partnership on which the unemployment insurance
12    system is founded and would eliminate the  historic  role  of
13    the  federal  government in both ensuring that administrative
14    financing keeps pace with ever-changing  workload  needs  and
15    assuring  that the program is implemented consistently across
16    the country; and

17        WHEREAS, Although the  Bush  administration  proposes  to
18    provide  much-needed  additional "Reed Act" funding for state
19    unemployment programs, under the proposal states will receive
20    no federal aid  to  fund  the  administrative  costs  of  the
21    unemployment insurance system after 2006; and

22        WHEREAS,  President Bush's proposal would force our State
23    to choose whether to cut benefits for unemployed  workers  or
24    raise  taxes  in  order  to  make  up for the loss of federal
25    administrative payments that will result from the cut in  the
26    Federal  Unemployment  Tax  Act  (FUTA) flat tax from $56 per
27    worker per year to $14 per worker per year; and

28        WHEREAS, President Bush's proposal would  jeopardize  the
29    federal  government's  ability  to  help our State respond to
30    economic downturns by drastically reducing  the  funding  now
31    dedicated to the Federal Unemployment Trust Funds; and
                            -2-                LRB9216324LBpc
 1        WHEREAS,  The  Bush  administration's  proposal  would do
 2    nothing to help states cope with the challenges of  expanding
 3    and   modernizing   their   unemployment  insurance  systems,
 4    including assuring that more low-wage and  part-time  workers
 5    are covered when they become unemployed; therefore be it

 7    NINETY-SECOND GENERAL ASSEMBLY, that we urge Governor Ryan to
 8    oppose  the  Bush  administration's  misguided   unemployment
 9    insurance devolution proposal; and be it further

10        RESOLVED, That we also urge the Governor to encourage the
11    Bush administration to instead work with the states to ensure
12    that states receive a greater level of workload-based federal
13    appropriations  for  administrative  financing and to provide
14    new dedicated  federal  funding  to  help  states  cover  the
15    workers  who  are  now  having  the  hardest  time collecting
16    unemployment benefits; and be it further

17        RESOLVED, That a suitable  copy  of  this  resolution  be
18    delivered to Governor Ryan and to each member of the Illinois
19    congressional delegation.

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