Committees:
Contact Information:
Ohio Aerospace and Aviation
Technology- Chair
Office: 614-644-6020
Toll-Free: 1-800-282-0253
Fax: 614-719-6942
Email: Rep73@ohiohouse.gov
Armed Services, Veterans Affairs
and Public Safety- Vice Chair
Economic and Workforce
Development
State Government
Finance- Higher Education
Subcommittee
State Representative Rick Perales
Ohio’s 73rd House District: Western Portion of Greene County
Armed Services, Veterans Affairs and Public Safety Committee
House Bill 105 Sponsor Testimony
Representatives Rep. Rick Perales and Hearcel F. Craig
Unemployment Compensation for Military Spouses
March 26, 2015
Thank you Mr. Chairman, the fiscal facts of this bill presents a cost-effective scenario to
help Ohio military families. According to LSC, the estimated number of military spouses who
would be eligible for benefits is currently 44, however, LSC does not take unto account the 30%,
that are employed by reimbursing employers. Reimbursing employers generally include public
employers (state agencies, local government entities, etc.) and non profit organizations. Making
this change would incur a yearly cost of approximately $236,236[1] if all eligible military spouses
would apply for and receive benefits. However, military moves and transfers generally occur
once every 3 – 5 years. Therefore, if 14 (44 divided by 3 =) eligible individuals would apply for
and receive unemployment benefits the year cost could be approximately $75,166.
Once again, these figures do not take in account reimbursing employers but for
clarification LSC and the US department of Labor used the same figures in determining
the actual cost. LSC’s figure shows the highest possible scenario.
According to the US Department of Labor, the estimated number of military spouses who
would be eligible for benefits would be 33, however DOL does take into account the number of
reimbursing employers and non profit organizations, so the DOL’s estimated number of eligible
spouses to 21. Making the yearly total cost of $109,196.
[1]
Source: Legislative Service Commission
www.house.state.oh.us
77 S. High Street, Columbus, Ohio 43215-6111
Ohio businesses are not penalized under House Bill 105. Military spouse benefits would be paid
out of the State’s mutualized account. The mutualized account is separate from the employers
accounts in the trust fund and maintained for the primary purpose of recovering the costs of
unemployment benefits that were paid and not chargeable to individual employers.
The one and only concern we have heard is from the Ohio Department of Job and Family
Services. As you know, the state borrowed funds from the federal government during the
recession to help pay for unemployment benefits. Currently, the state owes approximately $1.15
billion on the debt. With this outstanding balance, the state is limited in what legislation and
administrative action it can take regarding the unemployment program. HB 105 expands the
eligibility that could result in a net decrease in solvency of the state’s unemployment
compensation system. However, according to the US Department of Labor the totality of all
actions taken by the state in the prior twelve-month period would be factored into the solvency of
the state’s mutualized account. For example, any increase in the taxable wage base or tax rates
would neutralize the decrease in the solvency of the state’s unemployment compensation system
making this legislation harmless in regards in the Federal Unemployment Tax Act.