FY 2018-19 and 2019-20 Adopted Operating and CIP Budget

Unemployment Insurance

760.8230

Division Description The Human Resources Division (HR) manages the unemployment insurance activity and budget. In California, the Employment Development Department (EDD), administers the Unemployment Insurance Program (UI) according to guidelines established under federal law, the California UI Code, and the California Code of Regulations, Title 22. HR evaluates claims for benefits in an effort to manage the City’s liability in this area. The UI pays benefits to previous City employees who are out of work due to no fault of their own, and meet the program's eligibility requirements. The City has chosen the reimbursable method (also known as the cost-of-benefits method) as the most cost-effective way to manage the City’s unemployment insurance costs. The City reimburses the State for actual costs incurred for the payment of UI benefits. The UI benefits are funded entirely by the City, which does not have a reserve account.

FY 2016-17 and 2017-18 Accomplishments • Responded to all EDD notices of unemployment insurance claims filed within the required 10 days

FY 2018-19 and 2019-20 Activity Goals •

Continue to monitor all unemployment insurance claims and appeal claims that do not meet the eligibility requirements (Maintaining Fiscal Responsibility, Preserving and Cultivating Public Trust)

Financial Comments In FY 16-17, the City paid $7,524 in UI claims. For FY 17-18 through March 2018, the City paid $3,728 in UI claims. The City will continue to be challenged with unemployment claim charges due partly to seasonal and temporary employees filing for unemployment once their temporary assignment has ended and they are separated from employment with the City. The weekly unemployment insurance benefit amounts range from a minimum of $40 to a maximum of $450, depending on the claimant’s past quarterly earnings. The maximum amount of UI benefits payable to a claimant during a regular benefit year is 26 times the claimant's weekly benefit amount or one-half of the total base period earnings, whichever is less. The benefit year is a 52-week period starting on the effective date of a new UI claim.

308 INTERNAL SERVICE FUNDS/MISCELLANEOUS PROGRAMS