State of Alaska
Fiscal Note
Bill Version: HB 215
2020 Legislative Session
Fiscal Note Number: 1
(H) Publish Date: 1/27/2020
Identifier: LL4109-DOLWD-UI-01-07-20 Department: Department of Labor and Workforce Development
Title: EMPLOYER'S UNEMPLOYMENT INSUR RATE Appropriation: Employment and Training Services
Sponsor: RLS BY REQUEST OF THE GOVERNOR Allocation: Unemployment Insurance
Requester: Governor OMB Component Number: 2276
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2021 Governor's
Appropriation FY2021 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2021 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Personal Services
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Positions
Full-time
Part-time
Temporary
Change in Revenues
1251 Non-UGF (Other) (7,735.0) (14,694.0) (15,286.0) (15,209.0) (15,637.0) (15,971.0)
Total (7,735.0) 0.0 (14,694.0) (15,286.0) (15,209.0) (15,637.0) (15,971.0)
Estimated SUPPLEMENTAL (FY2020) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2021) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed? N/A
Why this fiscal note differs from previous version/comments:
Not applicable, initial version.
Prepared By: Patsy Westcott, Director Phone: (907)465-5543
Division: Employment and Training Services Date: 01/07/2020 04:30 PM
Approved By: Hannah Lager, Administrative Services Director Date: 01/08/20
Agency: Office of Management and Budget
Printed 1/27/2020 Page 1 of 2 Control Code: Bvgny
 HB 215 - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. 0
2020 LEGISLATIVE SESSION
Analysis
This legislation lowers employer minimum unemployment insurance tax rates for rate classes 1-9 from the current
minimum of 1.0% to 0.40% to 0.90%, corresponding to the employers' experience factor. Employer rates in classes 1-9
have been unchanged since FY2017, and rates in classes 1-6 have been unchanged since 2015, while the annual employee
wage base has increased incrementally. This has resulted in an unbalanced contribution burden on some Alaskan
employers.
An estimated 6,049 employers would benefit from the change in tax rates. Lower rates for employers in rate classes 1-9
will result in decreased revenue to the Unemployment Insurance Trust Fund. Changes in revenue are based on actuarial
estimates based on future payroll, using FY2019 as a baseline.
This change will result in reduced revenues to the Unemployment Insurance Trust Fund beginning in January 2021.
Actuarial analyses of the Unemployment Insurance Trust Fund indicate that the balance is healthy and potential future
decreases will not jeopardize the fund's sufficiency.
(Revised 10/22/19 OMB/LFD) Page 2 of 2
LL4109-DOLWD-UI-01-07-20 Page 2 of 2 Control Code: Bvgny


Statutes affected:
HB0215A, AM HB 215, introduced 01/27/2020: 23.20.290