The Senate will soon vote on a bill that would move some Unemployment Compensation Reserve funds to a new Workforce Opportunity Fund and change how they are used. (Getty Images photo by Peter Dazeley)
If a bill passed by the Iowa Senate Appropriations Committee on Tuesday becomes law, state unemployment funds would be used to pay for training programs.
Senate File 2260 creates a new Fund for the Workforce Opportunity and changes the rules for work-based learning programs and student teachers.
With the changes made, the bill would get rid of the Unemployment Compensation Reserve Fund and give $30 million to the new Workforce Opportunity Fund. The rest of the money would go to the Unemployment Trust Fund, according to Sen. Jeff Taylor, R-Sioux Center. Any interest that is earned on the fund will be sent to the Special Employment Security reserve fund.
The worker Opportunity Fund would give money to Iowa Workforce Development so that they can keep state worker programs running and make them bigger.
Jeff Taylor said, “I would just like to point out that the state did not use the reserve fund in 2009, 2010 during the Great Recession, or during the COVID period of 2020-21.” We finally think it makes sense to move that money that is just sitting there and not being used.
Sen. Molly Donahue, D-Cedar Rapids, said she was still worried about taking unemployment funds out of the way they were supposed to be used to create the new fund. However, she said that other parts of the change made the bill better.
When it comes to the jobless funds, Sen. Todd Taylor, D-Cedar Rapids, agreed with Donahue that it’s not clear what they will be used for other than meeting unemployment needs.
Todd Taylor said, “Unemployment money should really only do two things: pay for unemployment benefits and put less tax on businesses.”
The bill also shortens the student teaching requirements for some students who have worked as paraeducators or substitute teachers before. It also changes the Last-Dollar Scholarship program and makes work-based learning available outside of school hours.
If a student wants to get government student aid, they would have to show on the FAFSA form that their family’s expected contribution is $20,000. The scholarship would be given to programs that help students get jobs in 10 high-demand areas chosen by Iowa Workforce Development.
Sen. Cindy Winckler, D-Davenport, said that these changes to the Last-Dollar Scholarship program could lower the number of students who get aid and the number of people who go into high-demand jobs.
With the current program, Winckler said, a lot more degrees are qualified. She is also worried about how the change might affect other fields if they don’t make the top 10.
Donahue said that this bill would take power away from community schools, which are the best ones to know what jobs and programs are needed in the areas they serve.
He said, “Again, this takes away local control from our area, which knows best what’s needed in our area.” You can use that in any place where you have a smaller college. They are the ones who should be making decisions because they know what needs to be done.