Wayne Vroman - Topics in Unemployment Insurance Financing

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title	:	Topics in Unemployment Insurance Financing
author	:	Vroman, Wayne.
publisher	:	Upjohn Institute
isbn10 | asin	:	0880991941
print isbn13	:	9780880991940
ebook isbn13	:	9780585289694
language	:	English
subject	Insurance, Unemployment--United States--States--Finance.
publication date	:	1998
lcc	:	HD7096.U5V77 1998eb
ddc	:	368.4/401/0973
subject	:	Insurance, Unemployment--United States--States--Finance.

Page i Topics in Unemployment Insurance Financing Wayne Vroman The Urban Institute 1998

Page ii Library of Congress Cataloging-in-Publication Data Vroman, Wayne. Topics in unemployment insurance financing / Wayne Vroman. p. cm. Includes bibliographical references and indexes. ISBN 0-88099-194-1 (cloth: alk. paper).ISBN 0-88099-193-3 (paper: alk. paper) 1. Insurance, UnemploymentUnited StatesStatesFinance. I. Title. HD7096.U5V77 1998 368.4' 401' 0973dc21 98-41911 CIP Copyright 1998 W. E. Upjohn Institute for Employment Research 300 S. Westnedge Avenue Kalamazoo, Michigan 49007-4686 The facts presented in this study and the observations and viewpoints expressed are the sole responsibility of the author. They do not necessarily represent positions of the W. E. Upjohn Institute for Employment Research. Cover design by J. R. Underhill Index prepared by Nancy Humphreys. Printed in the United States of America.

Page iii Contents Acknowledgments vii The Author viii Overview 1 1 The History of State UI Financing 5 The Legal and Institutional Framework 5 Funding Strategies and Concepts 10 Advance Funding 10 Pay-As-You-Go Funding 12 Major Historical Developments in State Trust Funds 14 Trust Fund Developments in the 1990s 23 Notes 32 2 Flexible Financing 35 Experience-Rating Statutes 36 The Computation Lag 37 The Structure of Tax Rates: Minimums, Maximums, and Ranges 38 Maximum Tax Rate Schedules and Tax Capacity 44 Solvency Provisions in State UI Laws 53 Empirical Analyses of Flexible Financing 62 Empirical Measures of Tax Responsiveness 62 A Six-State Simulation Analysis of Solvency Taxes 65 Flexible Financing in Pennsylvania 67 Some Final Comments on Flexible Financing

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