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Pennsylvania State Senate
06/11/2024 11:46 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?SPick=20210&chamber=S&cosponId=37354
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Senate of Pennsylvania
Session of 2021 - 2022 Regular Session

MEMORANDUM

Posted: May 19, 2022 04:19 PM
From: Senator Michele Brooks
To: All Senate members
Subject: Extension of the Reemployment Fund
 
I will soon be introducing legislation to extend the Reemployment Fund for another four years.  Both the PA Department of Labor & Industry, and the PA Department of Conservation and Natural Resources have expressed interest and support in the extension of this fund.
 
The Reemployment Fund is funded by a portion of employee tax paid under the Unemployment Compensation (UC) Law.  It was established in Section 301.4(e)(1) of the law, which provided that five percent of employee contributions on wages paid from January 1, 2013 through September 30, 2017, were to be paid into the Reemployment Fund.  Act 42 of 2018 extended the allocation of five percent of employee contributions to the Reemployment Fund from July 1, 2018, through September 30, 2022. 
 
The Reemployment Fund may be used by L&I for the following purposes:
  • Programs and services to assist individuals become employed or improve their employment.
  • Research and studies to improve the department’s ability to provide employment services.
  • Improvements to the department’s IT infrastructure that will enhance the ability to provide employment services.
  • Administrative costs associated with the above activities.
L&I is also permitted to make funds available to other governmental and private sector organizations, on a competitive basis, to perform the activities outlined above.
 
In calendar year 2020, a total of $9,717,926.13 was deposited into the Reemployment Fund. The Law requires that all funds deposited in a calendar year must be expended or obligated by June 30 of the following year. Any unexpended or unobligated funds shall be transferred to the UC Trust Fund.  All calendar year 2020 funds were expended or committed by L&I as follows:
 
Grants $9,253,131.00
  • DCNR Youth Employment Programs – $1,600,000 to support the creation of a Youth Conservation Corps to provide youth and young adults the opportunity to receive paid training in construction and conservation in an effort to further employment in those age groups.
  • Direct Care Worker Grant – $4,807,000 to improve the quality of care provided by direct care workers while creating opportunities to build new careers and earn family-sustaining wages.
  • School to Work – $2,846,131 to support new partnerships between schools, employers, organizations, or associations to create employment and training career paths for students.
 
Center for Workforce Information & Analysis
  • $302,300.35 for the Center to research and study workforce needs, labor market information/trends, and in-demand occupations and skills.
 
Personnel
  • $162,494.78 on personnel salary and benefits costs in support of the grants described above.
This legislation will simply extend the dates for the Reemployment Fund to be in existence:  Five per centum (5%) of the contributions on wages paid from October 1, 2022 through September 30, 2026 shall be deposited into the Reemployment Fund to the extent the contributions are paid on or before December 31, 2026.

Thank you for your consideration of cosponsoring this legislation.


Introduced as SB1290