FOR IMMEDIATE RELEASE, Contact: (202) 225-1025
April 17, 1997
No. HR-6
Congressman E. Clay Shaw, Jr., (R-FL), Chairman, Subcommittee on Human Resources of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on certain unemployment insurance issues. The hearing will take place on Thursday, April 24, 1997, in room B-318 Rayburn House Office Building, beginning at 10:30 a.m.
In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. Witnesses will include State unemployment insurance directors, employers, and other experts on unemployment insurance issues. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee or for inclusion in the printed record of the hearing.
BACKGROUND:
The Federal-State unemployment insurance (UI) system is designed to provide temporary benefits to individuals with a recent work history who become involuntarily unemployed. Federal taxes generally support the administrative expenses of the system, with State taxes supporting benefits. Increased skepticism about the efficiency of the system, and especially its administration, have been cited in calls by States and employers for reform.
The Subcommittee is interested in various proposals to reform the administrative financing of the system. One proposal, supported by nine States (Kentucky, New Hampshire, Ohio, Georgia, Missouri, Virginia, Texas, Mississippi, and Oklahoma) would allow States to collect all taxes needed to pay for both administration and benefits (although the Federal Government would continue to set the level of tax that pays for administration). Another proposal would end the Federal tax and replace it with a State-set tax supporting administration. Both would allow the 0.2 percent Federal surtax, currently authorized through December 31, 1998, to expire. Proponents argue that allowing States greater authority to collect administrative funds would lead to lower payroll taxes, reduced business paperwork, and improved efficiency in labor markets across the country. While no pertinent bill has been introduced in the current Congress, the Subcommittee is interested in suggestions for change that promise increased employment and business growth while preserving the principles of the current unemployment insurance system.
A second major area of interest involves State flexibility in administering the UI system. In determining whether a worker's employment record is sufficient to warrant benefits, 47 States consider only wages earned over 4 of the last 5 completed calendar quarters (called the worker's "base period"). A few States also consider the worker's eligibility under an "alternative base period," increasing the likelihood that these workers will qualify for benefits. A recent Illinois Federal court decision (Pennington v. Doherty) called into question what formerly was assumed by States -- that the Social Security Act provides States with the authority to select their own base period, which need not include the use of an alternative base period. If every State were required to use an alternative base period, as the Pennington decision foreshadows, the consequences could be significant in terms of higher benefit payments and higher payroll taxes.
In announcing the hearing, Chairman Shaw stated: "Keeping the unemployment insurance system operating smoothly and efficiently is important to employees, employers, and the U.S. economy. This hearing is part of our ongoing efforts to ensure that the current system is working well and to explore ways of making it even better in the future."
FOCUS OF THE HEARING:
The hearing will focus on two main issues. First, the Subcommittee will consider testimony on administrative financing reform proposals that would allow greater State control in collecting taxes and administering unemployment insurance programs. Second, witnesses will discuss the implications of the Pennington case, a Federal court decision that has drawn into question whether States have full authority to set base periods used in determining eligibility for unemployment insurance benefits. In addition, other witnesses will discuss the way the UI system affects prisoners, Native Americans, actors and poll workers, and others.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Any person or organization wishing to submit a written statement for the printed record of the hearing should submit at least six (6) copies of their statement and a 3.5-inch diskette in WordPerfect or ASCII format, with their address and date of hearing noted, by the close of business, Thursday, May 8, 1997, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Human Resources office, room B-317 Rayburn House Office Building, at least one hour before the hearing begins.
FORMATTING REQUIREMENTS:
Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.
1. All statements and any accompanying exhibits for printing must be typed in single space on legal-size paper and may not exceed a total of 10 pages including attachments. At the same time written statements are submitted to the Committee, witnesses are now requested to submit their statements on a 3.5-inch diskette in WordPerfect or ASCII format.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.
4. A supplemental sheet must accompany each statement listing the name, full address, a telephone number where the witness or the designated representative may be reached and a topical outline or summary of the comments and recommendations in the full statement. This supplemental sheet will not be included in the printed record.
The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press and the public during the course of a public hearing may be submitted in other forms.
The
Committee seeks to make its facilities accessible to persons with
disabilities. If you are in need of special accommodations, please
call 202-225-1721 or 202-225-1904 TTD/TTY in advance of the event
(four business days notice is requested). Questions with regard to
special accommodation needs in general (including availability of
Committee materials in alternative formats) may be directed to the
Committee as noted above.