Voters could decide whether to prevent governors and legislators from dipping into state funds meant to benefit workers. The Assembly Labor Committee unanimously approved ACR134 which would prevent the Unemployment Insurance Trust Fund from being diverted to other budget expenses. From 1989 to 2005, governors and legislators from both parties diverted more than $5 billion from employee funds…$4.8 billion alone from the Unemployment Insurance Trust Fund…to use the money for other purposes.

Employers have been especially hard hit by diversions from the Unemployment Insurance Trust Fund, which is replenished through a tax increase triggered when the amount in the account falls below a certain level. The low level in the fund caused a tax hike on employers this year. The measure will provide stability to employers and assurance to employees who rely on the funds for benefits. Additionally, it would prohibit diversions from the accounts used to support Paid Family Leave and Temporary Disability Insurance.