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							20 Employment Department Analyst: Upadhyay

Request: Increase Federal Funds expenditure limitation by $7,964,750 and establish 55 limited-duration, full-time positions (43.45 full-time equivalent) to address increased Unemployment Insurance and Trade Act workload. Increase Other Funds expenditure limitation by $681,825 and establish seven limited-duration, full-time positions (5.53 full-time equivalent) to enable the Office of Administrative Hearings to address increased Unemployment Insurance workload. Recommendation: Approve the request, as amended: Increase Federal Funds expenditure limitation by $7,118,607 and establish 55 limited-duration, full-time positions (43.45 full-time equivalent) to address increased Unemployment Insurance and Trade Act workload. Increase Other Funds expenditure limitation by $619,177 and establish seven limited-duration, full-time positions (5.53 full-time equivalent) to enable the Office of Administrative Hearings to address increased Unemployment Insurance workload. Discussion: The Employment Department is requesting increases of $7,964,750 Federal Funds expenditure limitation and $681,825 Other Funds expenditure limitation, and establishment of 62 limited-duration, full-time positions (48.98 full-time equivalent) due to increased workload as a result of unemployment caused by the economic recession. The following is a breakdown of the request by program: Support the Unemployed: The Support the Unemployed program provides temporary income maintenance for workers who are unemployed through no fault of their own and acts as a partial economic stabilizer for communities during times of economic recession. The Department is requesting $6,729,087 Federal Funds expenditure limitation and establishment of 44 limited duration, full-time positions (34.76 full-time equivalent) to handle increase in Unemployment Insurance claims workload for the following reasons:  Make up deficiencies noted by the federal Department of Labor: The federal Department of Labor has expressed concern to the Employment Department on the Department’s poor performance in Non-Monetary Determinations timeliness and quality, drop in Lower Authority Appeals Timeliness (30-day and 45-day), and continuing late submittal of required reports. The Department is requesting $2,994,229 Federal Funds expenditure limitation and the establishment of 25 limited-duration, full-time positions (19.75 full-time equivalent) to meet this concern. The requested positions include two Technical/Executive Analyst 2 positions (1.58 full-time equivalent), 16 Employment Adjudicator positions (12.64 full-time equivalent), two Employment Appeals Board Legal Staff positions (1.58 full-time equivalent), two Office Specialist 1 positions (1.58 full-time equivalent), and three Office Specialist 2 positions (2.37 full-time equivalent). The Department’s request includes increased funding to be able to use the Office of Administrative Hearings more.

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Increase in workload due to Trade Act: The Unemployment Insurance Benefits staff’s workload has tripled in the last three years. Staff have been working on providing extended benefits to Trade Act claimants. They are also working on establishing procedures for a new alternative program which pays subsidies to older workers in lieu of training payments. The Department is requesting $167,827 Federal Funds expenditure limitation and the establishment of two limited-duration, full-time Compliance Specialist 2 positions (1.58 full-time equivalent). Senate Bill 903 fiscal impact: The 72nd Legislative Assembly passed Senate Bill 903 which extended emergency unemployment benefits. Because of timing issues, the Department was not provided the resources identified in the fiscal impact statement. The Department is requesting $1,471,743 Federal Funds expenditure limitation and the establishment of 13 limited-duration, full-time Business and Employment Specialist 2 positions (10.19 full-time equivalent) for workload related to Senate Bill 903. Additional workload (new forecast): The Department is requesting $2,095,288 Federal Funds expenditure limitation and the establishment of four Business and Employment Specialist 2 positions (3.24 full-time equivalent) to meet the increased workload based on a forecast of the number of claims that will be filed, as well as the length of time a claimant will be unemployed. The Department is also requesting funding for temporary employees and for other Services and Supplies costs.

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The Department of Administrative Services recommends $6,058,099 Federal Funds expenditure limitation and the establishment of 44 limited-duration, full-time positions (34.76 full-time equivalent) to handle increase in Unemployment Insurance claims workload. A majority of these limited-duration positions being requested are currently filled with temporary employees. As a result, the recommendation includes all the requested Personal Services dollars. However, the requested Services and Supplies dollars have been reduced by $670,988 Federal Funds. If the Employment Department needs additional resources to meet its workload in the future, the Department should make a request to the Emergency Board at a future date. Develop Workforce/Promote Employment: The Trade Act program is a sub-program within the Department’s Develop Workforce/Promote Employment program. The federal Department of Labor provides funding for the Trade Act program which provides training allowances and reemployment assistance to workers affected by foreign competition. Primary Oregon industries affected by foreign competition include wood products and high-tech industries. The Trade Act program has grown from $5,500,000 in the 1997-99 biennium to $18,600,000 in 2001-03. It is estimated that the program will grow to $24,000,000 this biennium. The Department has been handling this significant increase in workload by using job rotations, shifting positions from other programs, and only dealing with the immediate needs in the program. This has resulted in huge backlogs. The Department is requesting $1,235,663 Federal Funds expenditure limitation and establishment of 11 limited-duration, full-time positions (8.69 full-time equivalent) to handle increase in Trade Act workload. The requested positions include two Technical/Executive Analyst 2 positions (1.58 full-time equivalent), six Business and Employment Specialist 2 positions (4.74 full-time equivalent), two Office Specialist 2 positions (1.58 full-time equivalent), and one Administrative Specialist 2 position (0.79 full-time equivalent).
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The Department of Administrative Services recommends $1,060,508 Federal Funds expenditure limitation and the establishment of 11 limited-duration, full-time positions (8.69 full-time equivalent) for the Trade Act program. A majority of these limited-duration positions being requested are currently filled with temporary employees. As a result, the recommendation includes all the requested Personal Services dollars. However, the requested Services and Supplies dollars have been reduced by $175,155 Federal Funds. Office of Administrative Hearings: The Office of Administrative Hearings services for approximately 70 agencies, including the Employment Unemployment Insurance hearings. The Department reimburses the Office Hearings with a portion of the federal Unemployment Insurance revenue, receives as Other Funds revenue. provides hearings Department for of Administrative which the Office

The Department is requesting $681,825 Other Funds expenditure limitation and establishment of seven limited-duration, full-time positions (5.53 full-time equivalent) to address increased workload relating to Unemployment Insurance hearings. The requested positions include four Employment Hearing Referee positions (3.16 full-time equivalent), two Office Specialist 1 positions (1.58 full-time equivalent), and one Office Specialist 2 position (0.79 full-time equivalent). The Department of Administrative Services recommends $619,177 Other Funds expenditure limitation and the establishment of seven limited-duration, full-time positions (5.53 full-time equivalent) for the Trade Act program. All of these limited-duration positions being requested are currently filled with temporary employees. As a result, the recommendation includes all the requested Personal Services dollars. However, the requested Services and Supplies dollars have been reduced by $62,648 Other Funds. Legal Reference: Increase the Federal Funds expenditure limitation established by chapter 584, section 4 (1), Oregon Laws 2003, for the Employment Department, by $7,118,607 for the 2003-05 biennium. Increase the Other Funds expenditure limitation established by chapter 584, section 2, Oregon Laws 2003, for the Employment Department, by $619,177, for the 2003-05 biennium.

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