PEER Report #248

AN EVALUATION OF THE OFFICE CLOSINGS AND REDUCTION-IN-FORCE OF THE MISSISSIPPI EMPLOYMENT SECURITY COMMISSION, October 16, 1990, 76 pages

The Mississippi Employment Security Commission (MESC) resorted to employee layoffs and local office closures because House Bill 1498, which would have provided MESC with increased revenues, failed to pass the 1990 Legislature. PEER’s review found:

• MESC is experiencing a project FY 1991 net funding shortage of $1.7 million because of insufficient federal funding, legislative mandated salary increases and, consistent with federal law, the Governor’s full use of 10% of Wagner-Peyser funds that could have been used by MESC.
• MESC’s estimates of H. B. 1498’s effect on the unemployment trust fund were inaccurate and were not based upon an actuarial impact study.
• MESC management did not take sufficient action to control expenditures to address declining resources. Out-of-state travel increased 84% from FY 1988 to FY 1989 and use of personal services contractors increased 245% from FY 1988 to FY 1990.
• The office closure plan was not based upon a comprehensive and objective method and was not in compliance with the state FY 1991 appropriation bill.
• While layoffs of unemployment insurance personnel complied with State Personnel Board regulations, a proposed plan for laying off employment service employees was not approved by SPB because of noncompliance with SPB rules. The employment plan was withdrawn after the Governor and MESC Chairman decided to keep offices open part time.

For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.