Employment Security Department
| Average Annual FTEs | Near General Fund State | Other Funds | Total Funds | |
|---|---|---|---|---|
| (Dollars in Thousands) | ||||
| Current Budget | 2,331.9 | 73,711 | 872,110 | 945,821 |
| 2025-27 Maintenance Level | 2,209.1 | 39,837 | 811,306 | 851,143 |
| Difference from 2025-27 Original | (122.8) | (33,874) | (60,804) | (94,678) |
| % Change from 2025-27 Original | (5.3%) | (46.0%) | (7.0%) | (10.0%) |
2025 Policy Other Changes |
||||
| Continuing WA Cares Implementation | 10.8 | 0 | 2,749 | 2,749 |
| PFML Program Operations | 43.0 | 0 | 10,823 | 10,823 |
| Federal Funding Shortfall | 0.0 | 0 | 22,262 | 22,262 |
| WA Cares System Completion | 7.0 | 0 | 6,397 | 6,397 |
| Agricultural Workforce Services | 1.0 | 0 | 562 | 562 |
| Customer Compliance Integration | 29.2 | 0 | 7,551 | 7,551 |
| Career Connect Washington | 0.0 | 0 | 6,000 | 6,000 |
| CCW Grants- Tech. Correction | 0.0 | 0 | 75 | 75 |
| UI Customer Improvement Plan | 36.0 | 0 | 11,156 | 11,156 |
| Economic Security for All | 1.0 | 0 | 5,402 | 5,402 |
| Fund Swap- AmeriCorp Living Stipend | 0.0 | (1,740) | 1,740 | 0 |
| Fund Swap- Career Connect Learning | 0.0 | (14,435) | 14,435 | 0 |
| Fund Swap-Economic Security for All | 0.0 | (12,416) | 12,416 | 0 |
| Fund Swap-Audit Coordination Staff | 0.0 | (600) | 600 | 0 |
| LTSS Portability | 9.4 | 0 | 5,074 | 5,074 |
| Paid Leave System Completion Cont. | 28.5 | 0 | 8,966 | 8,966 |
| Justice Involved Employment Support | 6.8 | 0 | 2,107 | 2,107 |
| Savings- Administrative | 0.0 | (164) | 0 | (164) |
| Tech. Roadmap - Unemployment Ins. | 0.0 | 0 | 500 | 500 |
| Unemp. Insurance Navigators | 1.0 | 0 | 1,000 | 1,000 |
| Underspend-AmeriCorp Living Stipend | 0.0 | (7,340) | 0 | (7,340) |
| WorkSource Integrated Technology | 8.6 | 0 | 9,154 | 9,154 |
| ESD Website Maintenance | 0.0 | 0 | 180 | 180 |
| 2025 Policy Other Changes Total | 182.3 | (36,695) | 129,149 | 92,454 |
2025 Policy Comp Changes |
||||
| WFSE General Government | 0.0 | 65 | 14,448 | 14,513 |
| Non-Rep General Wage Increase | 0.0 | 13 | 2,472 | 2,485 |
| Non-Rep Targeted Pay Increases | 0.0 | 0 | 247 | 247 |
| Updated PEBB Rate | 0.0 | (4) | (696) | (700) |
| PERS & TRS Plan 1 Benefit Increase | 0.0 | 0 | 286 | 286 |
| Pension Benefit Amortization | 0.0 | (4) | (1,037) | (1,041) |
| 2025 Policy Comp Changes Total | 0.0 | 70 | 15,720 | 15,790 |
2025 Policy Central Services Changes |
||||
| Archives/Records Management | 0.0 | 0 | 5 | 5 |
| Audit Services | 0.0 | 0 | 55 | 55 |
| Legal Services | 0.0 | 0 | 545 | 545 |
| Administrative Hearings | 0.0 | 0 | 2,269 | 2,269 |
| WTS Central Services | 0.0 | 1 | 453 | 454 |
| DES Central Services | 0.0 | 0 | 205 | 205 |
| OFM Central Services | 0.0 | 0 | 4,047 | 4,047 |
| GOV Central Services | 0.0 | 0 | 33 | 33 |
| 2025 Policy Central Services Changes Total | 0.0 | 1 | 7,612 | 7,613 |
| Total Policy Changes | 182.3 | (36,624) | 152,481 | 115,857 |
| 2025-27 Policy Level | 2,391.4 | 3,213 | 963,787 | 967,000 |
| Difference from 2023-25 | 59.5 | (70,498) | 91,677 | 21,179 |
| % Change from 2025-27 Original | 2.6% | (95.6%) | 10.5% | 2.2% |
Policy Changes
Continuing WA Cares Implementation
Funding is provided for the staffing necessary for the Employment Security Department (ESD) to determine an individual's qualification status for the Long-Term Services and Supports Trust program, also known as WA Cares. In addition, funding is provided for ESD to partner with the Department of Social and Health Services to provide program statements to interested workers and to address anticipated call volumes regarding program statements. (Long-Term Servs & Sup Trust Account - State)
PFML Program Operations
Funding is provided for staff to increase the Paid Family and Medical Leave (PFML) program's capacity to process claims and respond to customer and employer inquiries in a timely manner. (Family & Medical Leave Insur Acct - State)
Federal Funding Shortfall
Funding is provided to bridge the gap in federal funding revenue for the unemployment insurance (UI) program for the 2025–27 biennium. (Administrative Contingency Account - State, Employment Services Administrative - State)
WA Cares System Completion
Funding is provided for the staffing and contractor costs associated with an extension to the WA Cares System Completion project. This project is intended to complete the second phase of the Long-Term Services and Supports (LTSS) Trust IT system, which includes the implementation of program qualification and correspondence with other state agency systems. (Long-Term Servs & Sup Trust Account - State)
Agricultural Workforce Services
Funding is provided to cover the variance for a position reclassification for Program Specialist 3 staff within the Office of Agricultural and Seasonal Workforce Services, an increase in travel costs necessary to perform required job duties, and a position that will create a central point of oversight of domestic farmworker recruitment, referral, and placement. (Employment Services Administrative - State)
Customer Compliance Integration
Funding is provided to extend 14 nonpermanent UI fraud investigators through June 30, 2026, to provide customer support and investigate potential cases of fraud. Funding is also provided to the PFML program for staff to perform employer audits and collect premiums and benefit overpayments in line with a pilot and the completion of necessary system functionality. (Employment Services Administrative - State, Family & Medical Leave Insur Acct - State)
Career Connect Washington
Funding is provided for Career Connected Learning program development grants to backfill a potential financial gap associated with a reduction of federal discretionary Workforce Innovation and Opportunity Act dollars. (Administrative Contingency Account - State, Workforce Education Investment Acc - State)
CCW Grants- Tech. Correction
Funding is provided to address a technical correction to the Career Connected Learning program's base budget. (Administrative Contingency Account - State, Workforce Education Investment Acc - State)
UI Customer Improvement Plan
Funding is provided for staff to increase the UI program's capacity to process claims and respond to customer inquiries in a timely manner. Funding is also provided to maintain the existing number of UI ambassadors located within WorkSource offices by offsetting a federal funding shortfall. The UI ambassadors provide in-person assistance to UI customers across the state and create more equitable access for claimants. (Employment Services Administrative - State)
Economic Security for All
Funding is provided to continue offering the Economic Security for All program to individuals that have incomes over 200% of the federal poverty level. Eligible participants must demonstrate financial need and may receive support services and assistance with training or education costs necessary to maintain or achieve self-sufficiency. Funding also covers a cost-of-living adjustment for business navigators supported by the Economic Security for All program. (Employment Services Administrative - State, General Fund - State)
Fund Swap- AmeriCorp Living Stipend
Funding reflects a one-time fund swap from General Fund-State Account to the Administrative Contingency Account for the increase to the AmeriCorps living stipend for members who are under 200% of the federal poverty level at the time of application. (Administrative Contingency Account - State, General Fund - State)
Fund Swap- Career Connect Learning
Funding reflects a one-time fund swap from the Workforce Education Investment Account to the Administrative Contingency Account for the base funding of the Career Connected Learning grants. (Administrative Contingency Account - State, Workforce Education Investment Acc - State)
Fund Swap-Economic Security for All
Funding reflects a one-time fund swap from the General Fund-State Account to the Employment Services Administrative Account for the base funding of the Economic Security for All program. (Employment Services Administrative - State, General Fund - State)
Fund Swap-Audit Coordination Staff
Funding reflects a one-time fund swap from the General Fund State-Account to the Administrative Contingency Account for the audit coordination staff base funding. (Administrative Contingency Account - State, General Fund - State)
LTSS Portability
Funding is provided for the implementation of chapter 120, Laws of 2024 (LTSS Trust Access), which allows individuals who have left Washington to elect to continue participation in the LTSS program under certain circumstances. Funding specifically covers technology system enhancements and customer support staffing. (Long-Term Servs & Sup Trust Account - State)
Paid Leave System Completion Cont.
Funding is provided for the continuation of IT staff to complete the remaining components of the Paid Family and Medical Leave program, including, but not limited to, the collection of overpayments, crossmatching of eligibility with other programs, and elective coverage for Tribes. (Family & Medical Leave Insur Acct - State)
Justice Involved Employment Support
Funding is provided for a justice-involved employment support pilot that contributes towards the Governor's Executive Order 24-03, Reentry 2030. The pilot consists of pre- and post-release employment readiness services for justice involved individuals in Thurston, Snohomish, and Walla Walla counties, support services, staffing necessary to implement the pilot, training, and travel costs. (Employment Services Administrative - State)
Savings- Administrative
Funding is reduced to align with projected administrative underspends associated with the Work Integrated Advisory Committee and Career Connected Learning. (General Fund - State, Workforce Education Investment Acc - State)
Tech. Roadmap - Unemployment Ins.
Funding is provided for the ESD to partner with a professional services company to evaluate current technology systems used for the UI program and to produce a comprehensive roadmap that addresses system challenges and makes recommendations for future enhancements. (Unemployment Compensation Admin - Federal)
Unemp. Insurance Navigators
Funding and staffing are provided for a one-year continuation of the Unemployment Insurance Navigator program. A portion of the funds will be contracted to community-based organizations to help raise awareness of the UI program to underserved populations and support them through the application process. (Employment Services Administrative - State)
Underspend-AmeriCorp Living Stipend
Funding is reduced to align with projected under-expenditures of the Washington Service Corps living stipend increase. (General Fund - State)
WorkSource Integrated Technology
Funding is provided for the completion of the replacement of the WorkSource Integrated Technology platform, which supports statewide workforce administration. The funding includes the continuation of staffing, vendor costs, and reimbursement for the Local Workforce Development Board's participation in the project. (Employment Services Administrative - State)
ESD Website Maintenance
Funding is provided for the ESD to maintain enhanced search functionality on its website. (Employment Services Administrative - State, Family & Medical Leave Insur Acct - State)
WFSE General Government
Funding for bargaining includes a 3%/2% general wage increase, targeted job classification increases, wildfire disaster leave, expanded bereavement leave, and paid vaccine travel time during pandemic emergencies. The agreement also includes: an additional $1 per hour supplemental shift premium for eligible employees who are assigned to a facility that provides direct care to residents, patients, and/or clients and whose duties are performed on location on evenings and weekends; 5% premium pay for employees who are assigned to a 24/7 facility that provides direct care to residents, patients, at-risk youth, and/or clients and whose duties are required to be performed on location, which will be in effect for the 2025–27 biennium; three additional steps on the nurse salary schedule; and an increase to the annual lump-sum payment for employees in LNI risk codes 7200/7201 from $500 to $750. (Family & Medical Leave Insur Acct - State, General Fund - Federal, Unemployment Compensation Admin - Federal, other funds)
Non-Rep General Wage Increase
Funding is provided for wage increases for state employees who are not represented by a union or are not under a bargaining agreement that is subject to financial feasibility determination. It is sufficient for a general wage increase of 3%, effective July 1, 2025, and a general wage increase of 2%, effective July 1, 2026. This item includes both general government and higher education workers. (Employment Services Administrative - State, Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal, other funds)
Non-Rep Targeted Pay Increases
Funding is provided for classified state employees who are not represented by a union or not covered by a bargaining agreement subject to financial feasibility determination, for pay increases in specific job classes in alignment with other employees. (Unemployment Compensation Admin - Federal)
Updated PEBB Rate
This item adjusts the employer funding rate for public employee insurance benefits to reflect policy-level decision packages. It increases the rate by $8 per month in the first fiscal year and decreases the rate by $34 per month in the second fiscal year, compared to the maintenance-level update, for a total rate of $1,315 in the first year and $1,355 in the second year. (General Fund - Private/Local, General Fund - State, Workforce Education Investment Acc - State, other funds)
PERS & TRS Plan 1 Benefit Increase
An adjustment is made for pension contribution rates, including to fund a benefit increase of 3%, up to a maximum of $110 per month for eligible Public Employees' and Teachers' Retirement Systems Plan 1 members. (Employment Services Administrative - State, Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal, other funds)
Pension Benefit Amortization
An adjustment is made to the base pension rates, as set out in a proposed bill addressing the calculation of the base rate for the 2025–27 biennium, as well as amortization of Plan 1 benefit increases. (General Fund - Private/Local, General Fund - State, Workforce Education Investment Acc - State, other funds)
Archives/Records Management
Adjustments are made for each agency's anticipated share of charges for archives and records management services provided by the Secretary of State's Office. (Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal)
Audit Services
Adjustments are made for each agency's anticipated cost of audits performed by the State Auditor's Office. (Employment Services Administrative - State, Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal, other funds)
Legal Services
Adjustments are made for each agency's anticipated cost of legal services provided by the Attorney General's Office. Because legal services expenditures are based on consumption, funding provided in the central service model is not all inclusive. The methodology to estimate consumption is a two-year average and allows for analysis to incorporate unique agency circumstances. (Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal)
Administrative Hearings
Adjustments are made for each agency's anticipated cost of hearings performed by the Office of Administrative Hearings. (Family & Medical Leave Insur Acct - State, Long-Term Servs & Sup Trust Account - State, Unemployment Compensation Admin - Federal)
WTS Central Services
Adjustments are made to reflect each agency's anticipated share of charges from Washington Technology Solutions for the Office of Cybersecurity, state network, enterprise and small agency IT services, enterprise architecture and data management, Microsoft 365 licenses, and other items. (Employment Services Administrative - State, Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal, other funds)
DES Central Services
Adjustments are made to reflect each agency's anticipated share of charges from the Department of Enterprise Services for Capitol Campus costs; real estate, risk management, and small agency services; the Perry Street and Capitol Campus child care centers; enterprise applications, and other items. (Employment Services Administrative - State, Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal, other funds)
OFM Central Services
Adjustments are made to reflect each agency's anticipated share of charges from the Office of Financial Management for existing statewide applications, the One Washington program, and other central services. See Chapter 11 of the 2025–27 OFM Budget Instructions for allocation methodologies. (Administrative Contingency Account - State, Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal, other funds)
GOV Central Services
Adjustments are made to reflect each agency's anticipated share of charges from the Office of the Governor for the Office of Equity. (Employment Services Administrative - State, Family & Medical Leave Insur Acct - State, Unemployment Compensation Admin - Federal, other funds)
