ARIZONA STATE SENATE
Phoenix, Arizona
unemployment insurance;
amount of benefits
Indexes
the amount of the maximum weekly unemployment benefit to a percentage of the
Arizona average weekly wage.
Under
current law, the maximum weekly benefit amount (MWBA) an individual can receive
for unemployment benefits is $205. This
measure changes the benefit formula by indexing the MWBA to the average weekly
wage in Arizona from the prior year.
The average weekly wage in Arizona is determined by the U.S. Department
of Labor.
Under this measure,
beginning July 1, 2000, an individual can receive up to 41 percent of the
average weekly wage. On July 1, 2001
the indexed percentage increases to 46 percent of the average weekly wage. And on July 1, 2002 and thereafter, the
index increases to 50 percent of the average weekly wage.
According to the Department
of Economic Security (DES), using the average weekly wage in Arizona in 1998, the
MWBA effective on July 1, 2000 would be $231.
The following year it would become $259 and, on July 1, 2002, the MWBA
would be $281. However, because the
average weekly wage in Arizona for 1999 and 2000 is expected to be higher, DES
expects the indexed amounts to be actually higher.
Finally, DES is not yet
aware of the effect this measure will have on the unemployment insurance trust
fund or employer tax rates.
1. Indexes the amount of the weekly unemployment benefit to a percentage of the average weekly wage in Arizona during the previous year.
2. Phases in the indexing over three years: 41 percent in FY 2000-2001, to 46 percent in FY 2001-2002, to 50 percent in FY 2002-2003 and thereafter.
3. Defines “average weekly wage” as the average weekly wage published by the United States Department of Labor.
4. Becomes effective from and after June 30, 2000.
Prepared by Senate Staff
February 3, 2000