NGA Position

Governors support a national, state administered, employment security system. The system serves an important public function by providing unemployment compensation to jobless workers, labor market information to employers and job seekers and rapid reemployment to support the nation's business community. The system is funded by federal grants to states for program administration. These funds are appropriated from federal unemployment taxes paid by employers and deposited in the federal accounts of the unemployment trust fund.

Related Materials:

NGA letter to Congressional leadership on Unemployment and State UI Trust Funds
December 9, 2009 letter (from Governor Ritter and Governor Rell) to House and Senate leadership urging support for an extension of unemployment compensation, full federal funding for extended benefits, federal assistance for states to serve jobless workers and an extension of existing law to provide interest free borrowing for state unemployment insurance trust funds.

NGA Memo to President-Elect Obama Transition Team on Key Workforce Priorities for the Nation's Governors
December 16, 2008, Memo providing feedback to the President-Elect Obama Transition Team on key priorities of governors to improve the nation's workforce system and to work with the administration to resolve State Unemployment Insurance Trust Fund.

NGA letter to Senate Finance and House Ways and Means in Support of UI Extension
May 1, 2008 letter (from Governor Carcieri and Governor Henry) to Senate Finance Committee leadership and House Ways and Means Committee leadership expressing support for an extension of unemployment benefits and to request federal assistance for states to serve a growing number of jobless individuals.