1. OESC FINANCIAL OVERVIEW F EBRUARY, 2005

2. 2 TABLE OF CONTENTS 1. HOW OESC IS FUNDED 2. OTHER SOURCES OF REVENUE 3. OESC EXPENDITURES 4. UNEMPLOYMENT INSURANCE ACTIVITIES

3. 3 OESC FUNDING-GRANTS 1. Unemployment Insurance 2. Employment & Training 3. Employment Services 4. Economic Research & Analysis OESC EXECUTIVE OFFICE EMPLOYMENT SERVICES ADMINISTRATION & FINANCE UNEMPLOYMENT INSURANCE RESEARCH & ANALYSIS EMPLOYMENT & TRAINING INFORMATION TECHNOLOGY

4. 4 Other Sources of Revenue Reed-Act Redistribution Penalty & Interest Program Income

5. 5 OESC FUNDING DESCRIPTION OF MAJOR GRANTSFY2004FY2003VARIANCE UNEMPLOYMENT INSURANCE$20,215,125$19,782,086$433,039 EMPLOYMENT AND TRAINING$8,216,880$6,681,849$1,535,031 EMPLOYMENT SERVICES$10,129,718$12,148,545($2,018,827) RESEARCH AND ANALYSIS$1,703,439$1,696,413$7,026 REEDACT APPROPRIATION$4,500,000$6,219,458($1,719,458) PENALTY AND INTEREST FUND$1,502,718$1,298,764$203,954 $46,267,880$47,827,115($1,559,235)

6. 6 YEAR TO DATE COMPARATIVE ANALYSIS DESCRIPTIONYEAR 2004YEAR 2003VARIANCE% VARYEAR 2002 DIRECT PERSONNEL SERVICES$19,298,162.29$20,040,667.29($742,505.00)-3.70%$20,048,513.56 ANNUAL LEAVE TAKEN$1,686,964.42$1,633,797.21$53,167.213.25%$1,711,895.29 OTHER PERSONNEL SERVICES$2,078,722.56$1,976,125.29$102,597.275.19%$1,922,997.18 TOTAL PERSONNEL SERVICES$23,063,849.27$23,650,589.79($586,740.52)-2.48%$23,683,406.03 PERSONNEL BENEFITS$9,514,031.05$7,860,927.60$1,653,103.4521.03%$7,701,146.69 TOTAL PS/PB$32,577,880.32$31,511,517.39$1,066,362.933.38%$31,384,552.72 SUPPLIES$859,554.21$632,765.99$226,788.2235.84%$887,380.15 COMMUNICATIONS$1,440,629.94$1,768,240.18($327,610.24)-18.53%$1,726,015.34 TRAVEL$689,541.65$659,802.90$29,738.754.51%$707,529.19 EQUIPMENT EXPENSE$3,331,405.69$2,876,787.40$454,618.2915.80%$3,458,088.44 PREMISES EXPENSE$1,998,344.56$2,047,635.30($49,290.74)-2.41%$2,041,618.44 SERVICES$1,852,261.98$1,929,096.32($76,834.34)-3.98%$3,196,802.14 OTHER$362,353.40$303,319.84$59,033.5619.46%$352,688.42 TOTAL NPS$10,534,091.43$10,217,647.93$316,443.503.10%$12,370,122.12 TOTAL EXPENDITURES$43,111,971.75$41,729,165.32$1,382,806.433.31%$43,754,674.84

7. 7 Unemployment Insurance The Largest Grant Supports Approximately 401 OESC Employees. Pays about 51% of OESC Administrative Expenditures. Largest Block of Employees works in Field Audit, Call Centers, Appeals, Benefits, & Contribution Units.

8. 8 UI FUNDING DESCRIPTION FY2005FY2004FY2003FY2002 Unemployment Insurance Base $18,408,448$17,600,390$17,111,572$18,314,728 Contingency Revenue $1,500,000$1,900,327$2,781,777$2,315,299 Extended Benefit $168,752$1,981,160$1,168,637$0.00 TOTAL UI FUNDING $20,077,200$21,481,877$21,061,986$20,630,027

9. 9 Employment & Training Youth Dislocated Worker Adult Title V Disability Navigator Grant

10. 10 WORKFORCE INVESTMENT ACT DESCRIPTIONFY2005FY2004FY2003 WIA$26,724,882$21,361,908$24,165,712 PASS THROUGH$20,471,594$16,696,246$19,053,467 GOVERNORS 15%$4,008,286$3,204,286$3,624,857 RAPID RESPONSE$2,245,002$1,461,376$1,487,388 STATE WIA ADMINISTRATION $6,253,288$4,665,662$$5,112,245

11. 11 EMPLOYMENT SERVICE Has been on the decline for the last 10 years. Primary support of the One Stop Centers. Maybe combined with WIA based on the Presidents proposed budget. Supports approximately 215 FTES The primary grants are Wagner Pyser LVER DVOP TANF Re-Employment Services

12. 12 EMPLOYMENT SERVICES DescriptionPY2005PY2004PY2003 Wagner Pyser$7,672,154$7,713,677$7,925,054 LVER$1,200,000$1,462,000$1,516,000 DVOP$689,728$920,000$809,000 TANF$255,572$1,035,000$1,326,000 Re-Employment Services $198,014$375,320$359,867 TOTAL$10,015,468$11,505,997$11,935,975

13. 13 11 YEAR TRUST FUND ACTIVITIES TRUST FUND SUMMARY 1/1/1994 TO 12/31/04 BEGINNING TRUST FUND BALANCE 1/1/1994$437,335,223.55 EMPLOYER CONTRIBUTIONS$1,176,421,522.32 INTEREST INCOME RECEIVED$373,141,881.25 REED ACT RECEIVED$82,608,062.62 ADDITIONS TO THE TRUST FUND $1,632,171,466.19 TOTAL BENEFIT PAYMENTS($1,614,362,778.23) REED ACT USED($8,002,968.39) CMIA AND OTHER CORRECTIONS($21,686.99) DEDUCTIONS FROM THE TRUST FUND ($1,622,387,433.61) ENDING TRUST FUND BALANCE 12/31/2004 $447,119,256.13

14. 14 EMPLOYER CONTRIBUTIONS MONTH200420032002200120001999 JANUARY$4,462,535$3,173,650$2,185,810$1,410,331$1,890,031$2,020,829 FEBRUARY$11,871,638$6,569,813$4,321,279$4,608,731$4,788,818$5,087,553 MARCH$775,713$870,423$210,581($154,977)$602,363$258,289 APRIL$41,624,703$21,782,479$14,459,344$6,600,598$5,616,471$6,677,269 MAY$87,437,206$55,315,191$35,403,978$18,994,755$15,121,773$14,733,176 JUNE$3,928,985$3,377,841$1,001,328$144,210$653,415$395,246 JULY$25,132,096$15,360,921$9,100,993$4,107,002$3,715,963$4,989,496 AUGUST$53,329,604$25,887,676$15,196,372$9,392,644$7,558,109$8,690,794 SEPTEMBER$1,679,190$941,714$565,572$478,039$262,747$214,226 OCTOBER$12,266,406$7,946,325$4,740,161$2,522,959$3,221,173$2,698,777 NOVEMBER$31,660,549$13,178,701$8,186,664$5,878,556$7,368,952$5,660,466 DECEMBER$1,208,507$935,302$657,794$263,383$238,175$290,298 TOTAL$275,377,134$155,340,034$96,029,878$54,246,230$51,037,988$51,716,418 PERCENT CHANGE$275,377,134$155,340,034 77.27%

15. 15 BENEFIT PAYMENT TREND MONTH200420032002200120001999 JANUARY$20,064,194$22,719,365$20,005,322$13,743,264$10,380,144$11,282,521 FEBRUARY$20,104,156$20,143,882$19,283,932$11,855,560$7,026,731$10,215,540 MARCH$20,631,884$26,878,692$23,353,383$13,788,885$8,837,205$12,413,744 APRIL$16,274,411$23,446,935$20,818,122$12,767,089$8,378,714$10,201,843 MAY$17,691,870$19,529,434$18,403,230$10,266,059$6,840,733$10,142,229 JUNE$17,365,473$30,272,484$21,413,452$15,598,005$8,968,338$10,797,774 JULY$14,051,310$24,404,296$21,012,897$18,646,347$9,876,135$10,118,781 AUGUST$15,881,153$20,317,692$17,919,071$13,851,920$6,937,675$10,236,056 SEPTEMBER$12,797,490$25,034,692$22,211,090$15,098,210$7,475,458$8,789,100 OCTOBER$13,706,371$19,903,260$19,945,527$13,121,313$10,431,138$8,750,827 NOVEMBER$11,380,800$19,023,135$16,635,669$15,383,956$10,171,662$7,545,403 DECEMBER$13,334,879$21,286,642$24,870,625$21,386,099$9,773,635$9,329,227 TOTAL$193,283,992$272,960,511$245,872,319$175,506,709$105,097,567$119,823,045 PERCENTAGE CHANGE $193,283,992$272,960,511 -29.19%

16. 16 TRUST FUND INTEREST INCOME QUARTER 20032004YIELD 2004 1ST QUARTER$6,552,119$5,077,9606.09% 2ND QUARTER$6,179,110$5,242,1225.64% 3RD QUARTER$6,093,861$5,891,2565.43% 4TH QUARTER$5,616,883$6,141,324 5.40% TOTAL$24,441,973.71$22,352,662.04

17. 17 HOW YOU CAN HELP Understand your Profile and complete exception Report when necessary. Be responsible with supplies, do not waste. Use email instead of a long distance call. Make sure all calls are business related. Understand agency fraud policy and report fraudulent activities accordingly.

18. THE END OF OESC FINANCIAL OVERVIEW LEVI C. ONWUCHURUBA, CFO