7100 Employment Development Department
Major Program Changes
  • Unemployment Insurance Program Administration Funding Shortfall - The Budget includes multiple adjustments to address a historic funding shortfall in the Unemployment Insurance program. The Budget proposes (1) an increase of $64 million in the Employment Development Department Contingent Fund, (2) a decrease of $102.3 million in the Unemployment Administration Fund, (3) an increase of withholding penalties deposited in the Contingent Fund from 10 percent to 15 percent effective July 1, 2014, and (4) a one-year suspension of the transfer of personal income tax withholdings to the General Fund. These funding changes, along with programmatic efficiencies, will restore 2014-15 service levels to 2012-13 levels, and allow the EDD to retain staff and continue overtime to process new and continued claims.

  • Unemployment Insurance Interest Payment - The Budget includes $231.6 million General Fund to make an interest payment on funds borrowed from the federal government to pay California's Unemployment Insurance benefits without interruption.

  • October Revise - The Budget includes a decrease of $251.8 million in 2013-14 and a decrease of $3.2 billion in 2014-15 for Unemployment Insurance benefit payments based on current economic conditions and the projected expiration of the federal benefits extension program. The Budget also includes a decrease of $142.6 million in 2013-14 and an increase of $177.5 million in 2014-15 for anticipated Disability Insurance benefit payments.

  • October Revise Workload Investment Act (WIA) Funding - The Budget includes an increase of $11.8 million federal funds in 2013-14 for the Governor's discretionary WIA funding and 25 Percent Rapid Response Funds.