ADVISORY

FROM THE COMMITTEE ON WAYS AND MEANS
SUBCOMMITTEE ON HUMAN RESOURCES

FOR IMMEDIATE RELEASE, CONTACT: (202) 225-1025
February 22, 2000
No. HR-16


Johnson Announces Hearing on
Unemployment Compensation Reform

Congresswoman Nancy L. Johnson (R-CT), Chairman, Subcommittee on Human Resources of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on unemployment compensation reform. The hearing will take place on Tuesday, February 29, 2000, in room B-318 Rayburn House Office Building, beginning at 1:30 p.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 Governor Jane Dee Hull of Arizona and Governor Bob Taft of Ohio, Members of Congress, and a representative of the U.S. Department of Labor. Additional witnesses will include representatives of employers, labor, State administrators, and scholars. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.

BACKGROUND:

The Unemployment Compensation system is a Federal-State program that provides benefits to unemployed workers with a history of labor force attachment. Every State designs its own benefit program, within a broad framework provided by Federal law, and levies taxes on employers to pay for regular unemployment benefits. The Federal Government also imposes a tax on employers, based on their number of employees, that pays for the Federal parts of the system. These parts include payments for State and Federal administration, funds for the U.S. Employment Services which helps unemployed workers reenter the labor market, funds for loans to States with bankrupt programs, and funds for half of extended unemployment benefits for workers in States with exceptionally high levels of unemployment. All funds, both those for regular State benefits and for the Federal parts of the system, are kept in Federal accounts that, like Social Security funds, are part of the unified Federal budget.

In the last three years, several proposals for reforming the Unemployment Compensation program have been discussed. Several of these proposals have appeared in proposed legislation. Some of the major legislative proposals would:

-- eliminate the 0.2 percent surtax placed on employers in 1976 and was extended most recently through 2007 by the Balanced Budget Act of 1997;

-- change the base period employment requirements to qualify for unemployment benefits and thereby allow more workers to qualify;

-- shift some Federal responsibilities, including control over the taxes that support them, to the States;

-- provide incentives for States to improve the solvency of their benefit accounts;

-- make the extended benefits program more accessible; and

-- increase access to unemployment benefits for laid-off workers seeking part-time work.

A working group of the Administration, labor, business, and various entities with an interest in Unemployment Compensation has been meeting for nearly two years in the attempt to reach a compromise proposal that could draw support from across the political spectrum.

In announcing the hearing, Chairman Johnson stated: "The nation's unemployment program provides critical services to out-of-work Americans. As we move into the 21st Century, it is important that we improve and strengthen the system so we can meet the increasingly complex needs of the changing workforce. This hearing will give us an opportunity to review a variety of proposals developed to meet this goal."

FOCUS OF THE HEARING:

The hearing will focus on the various reforms now under discussion.

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 six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, with their name, address, and hearing date noted on a label, by the close of business, Tuesday, March 14, 2000, 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, by close of business the day before the hearing.

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 submitted on an IBM compatible 3.5-inch diskette WordPerfect or MS Word format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.

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, company, address, telephone and fax numbers where the witness or the designated representative may be reached. 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.

Symbol to Show Committee Seeks to Assist Persons with Disabilities at the Committee's facilities.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 202-226-3411 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.