GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	1 

SENATE JOINT RESOLUTION 226

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Sponsors: Senator Smith.

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Referred to:  Rules Suspended; Rules and Operation of the Senate.

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March 13, 1991

A JOINT RESOLUTION MEMORIALIZING CONGRESS AND THE PRESIDENT OF  THE UNITED STATES TO APPROVE EMERGENCY SUPPLEMENTAL  APPROPRIATIONS TO THE UNEMPLOYMENT INSURANCE PROGRAM FOR THE  1991-92 FISCAL YEAR.
Whereas, the unemployment insurance program was established under both federal and State law to provide for income maintenance during periods of involuntary unemployment; and
Whereas, employers throughout the United States are required to pay federal unemployment taxes, which are earmarked solely for purposes of supporting the costs of the national employment security system; and
Whereas, sufficient administrative resources have not been appropriated by Congress when needed to support the increasing administrative costs of processing higher unemployment claims; and
Whereas, federal reserves currently exist to fully support the costs of the national employment security program; and
Whereas, North Carolina and as many as 40 other states have been forced to provide State supplemental administrative resources to operate their state programs in spite of the fact that abundant federal resources could be made available to states; and
Whereas, since 1980, the North Carolina Employment Security Commission (NCESC) has been forced to reduce staffing by more than 500 positions.  The NCESC has also reduced service in every part of the State of North Carolina; and
Whereas, because of the increase in the level of unemployment throughout the nation, it is anticipated that the national administrative shortfall for fiscal year 1991-92 will be approximately $140 million; and
Whereas, it has been estimated that the NCESC could experience a shortfall of administrative funds of approximately $9 million; and
Whereas, the failure to adequately fund the administrative needs of the national employment security system is a detriment to both employers who pay the taxes and to individuals who wait extended periods to receive services; and
Whereas, further deteriorations in the employment security system because of insufficient administrative resources could result in the collapse of the system;
Now, therefore, be it resolved by the Senate, the House of Representatives concurring:
Section 1.  To ensure that sufficient reserve funds are made available to states when there are unexpected increases in workload, the General Assembly urges that a permanent change be made to federal law to avoid similar problems in the future.
Sec. 2.  The General Assembly further recommends that Congress provide for the removal of the trust fund accounts of the employment security system from the Federal Unified Budget.
Sec. 3.  The Secretary of State shall transmit a certified copy of this resolution to the President of the United States, the Secretary of Labor, the Chairman of the House Ways and Means committee, the Chairman of the Senate Finance committee, the Chairman of the House Budget committee, the Chairman of the Senate Budget Committee, and to each member of the North Carolina Congressional Delegation.
Sec. 4.  This resolution is effective upon ratification.