7100 Employment Development Department
Major Program Changes
  • Employment Training Panel - The Governor's Budget includes an increase of $230 million Employment Training Fund to expand employment opportunities in California. This includes $140 million for employers and training providers that deliver training for unemployed and underemployed individuals, as well as for employment expansion and job retention, and $90 million to provide employers $3,000 for each unemployed individual who maintains their employment for a total of nine months. Funding for this initiative will be provided by a loan from the Unemployment Compensation Disability Fund.

  • Automated Collection Enhancement System - The Governor's Budget includes $31.4 million ($24.6 million General Fund) and 61.0 positions for continuation of the EDD's Automated Collection Enhancement System (ACES), which will improve the EDD's ability to track, collect, and audit the payment of specified employer payroll taxes, including the personal income tax witholding. It is anticipated that during 2010-11 the first vendor payment of $23 million will occur and there will be increased General Fund revenues attributable to the ACES solution of $42.1 million.

  • Eliminate Contingent Fund Support of Unemployment Insurance Program - The federal government is currently fully funding the costs of administering the Unemployment Insurance Program, thus eliminating the need for this program to be supplemented with state funds. Consequently, the Governor's Budget includes a reduction of $17.9 million Contingent Fund, resulting in an increase to the end-of-the-year transfer to the General Fund by an equal amount.

  • Disability Insurance Automation Project - The Governor's Budget includes $34.0 million Unemployment Compensation Disability Fund for the fifth year of the EDD's Disability Insurance Automation Project, which will allow claimants, medical providers, and employers to use the Internet to submit claims data.

  • Unemployment Insurance Modernization Information Technology Projects - The Governor's Budget includes $25.0 American Recovery and Reinvestment Act (ARRA) funds for Single Client Database (SCDB), Alternate Base Period (ABP), and Unemployment Insurance Modernization (UIMod) projects. A Spring Finance Letter will be submitted to request authority to use the remaining ARRA funds for five additional e-government projects.

  • October Revise - The Governor's Budget includes a decrease of $11.6 billion in Unemployment Insurance benefit payments and an increase of $341.0 million in Disability Insurance benefit payments. The October Revise also includes a state operations decrease of $86.8 million and 1,357.7 positions for the various employment assistance payments that EDD administers.