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EXECUTIVE OFFICE OF THE PRESIDENT John BUREAU OF THE BUDGET WASHINGTON 25, D. C. OCT 25 1945 My dear Mr. Latta: On October 22, 1945, you advised this office that H. J. Res. 116, "To facilitate the execution of subsection (d) of section 13 of the Railroad Unemployment Insurance Act, as amended," had been received at the White House, and requested reports and recommendations as to the approval of the bill. Under the provisions of the Railroa Unemploymen t Insur- ance Act, the States were required to transfer from their ac- counts in the Unemployment Trust Fund in the Federal Treasury to the railroad unemployment insurance account in that fund, certain sums, as determined by the Social Security Board, out of moneys the States had collected from railroads and railroa d employees during the time when railroa employment was covered under the various State unemployment compensation laws. The State of Kentucky, because of a lack of constitutional authority, has been unable to meet its liability to effect the required transfer of funds. In view of the inability of Kentucky to ef- fect the required transfer, and in order to accomplish the ob- jective of the statute in this respect, the Social Security Board, commencing July 1, 1944, began making quarterly deposits in the railroad unemployment insurance account in the Unemploy- ment Trust Fund of amounts which would otherwise have gone to that State under Title III of the Social Security Act in the form of Federal grants for administrative expenses in the opera- tion of the Kentucky Unemployment Compensation Law. Until its liability with respect to the transfer of funds has been met, through the quarterly deposits by the Social Se- curity Board of administrative expense grants into the railroa d unemployment insurance account, the State of Kentucky will be obliged, out of revenue secured by taxes on employers, to de- fray the expensesof administering its unemployment compensation law. In order tha t the State may have some definite assurance of the total amount of administrative expense money which the FRUMAD C3° NARA