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Program Enhancements and Other Budget Adjustments
Employment Development Department
The EDD promotes California's economic growth by providing services to keep employers, employees, and job seekers competitive. The EDD connects employers with job seekers, administers the Unemployment Insurance, Disability Insurance, and Paid Family Leave programs, and provides employment and training programs under the federal Workforce Investment Act of 1998. The EDD collects various employment payroll taxes including the Personal Income Tax, and collects and provides comprehensive economic, occupational, and socio-demographic labor market information concerning California's workforce. The Governor's Budget includes $10.8 billion ($44.4 million General Fund), a decrease of $332 million ($13.4 million General Fund increase) from the revised 2006-07 budget.
TAX SHARING RATIO CHANGE
The Governor's Budget includes $13.5 million General Fund and a corresponding decrease of $13.5 million ($2.4 million from the Employment Training Fund and $11.1 million from the Unemployment Compensation Disability Fund) to properly align EDD's costs for the collection of various employment taxes with each fund paying its "fair share" of the shared tax function. The EDD is responsible for collecting Unemployment Insurance, Disability Insurance, General Fund (through the Personal Income Tax), and the Employment Training Tax.
OCTOBER REVISE
The Governor's Budget includes an increase of $200.6 million (various special funds) in benefit payments and a decrease of $19.4 million (various special funds) and 162.2 positions to reflect anticipated workload for various employment assistance payment programs that EDD administers. These numbers reflect the net total local assistance dollars that are identified in the 2006 October Revise, which are Unemployment Insurance, Disability Insurance, School Employees Fund programs, and the available Workforce Investment Act funds. Including the School Employees Fund benefits and excluding the WIA distribution to local agencies, the total benefit amount is $206.9 million.
AUTOMATED COLLECTION ENHANCEMENT SYSTEM (ACES)
The Governor's Budget provides $2.8 million ($2.5 million General Fund) to continue the ACES, which will enhance the department's ability to collect state payroll taxes, including the personal income tax, by modernizing and automating its revenue collection process.
CONTINGENT FUND TRANSFER TO THE GENERAL FUND
The Governor's Budget eliminates $27.1 million Contingent Fund in the EDD Job Services Program, and makes a corresponding transfer of these funds to the General Fund. There is $153 million federal funds remaining in the program to support a variety of services designed to facilitate a match between employers and job seekers, and for a variety of case-managed programs that provide specialized services to job seekers needing extra assistance, such as welfare recipients, parolees, veterans, youth, disabled, and long-term unemployed individuals. This funding will provide services to more than one million job seekers and 53,000 employers in 2007-08. Additional services similar to those provided through the EDD's Job Services Program are provided to certain specific client groups through the state's CalWORKS Program.
CHAPTER HIGHLIGHTS for
Labor and Workforce Development Back to Top
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Labor and Workforce Development (pdf * - 36K)
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Provides this entire Labor and Workforce Development Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Proposed Budget Detail - Labor and Workforce Development
Displays Proposed Budget Detail information for Labor and Workforce Development.
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