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CASE STUDY
Safeguarding D.C.’s Unemployment Insurance Trust Fund Solvency via Predictive Modeling
Deployed 27 advanced financial forecast simulations using Department of Labor models to stress-test trust fund solvency against federal reduction scenarios, paving the way for post-COVID trust fund solvency.
01. Challenge
Stabilizing a Pandemic-Depleted Trust Fund Against Future Shocks
Following the historic economic disruptions of the COVID-19 pandemic, the D.C. Office of Unemployment Compensation (OUC) faced an unsustainably depleted UI Trust Fund. This systemic risk was worsened by a Taxable Wage Base that had remained unchanged since 1995. Complicating matters further, the agency needed to determine its fiscal cushion to protect local workers ahead of a projected 2025 federal workforce Reduction in Force (RIF).
02. Solution
Advanced UNIS-X Scenario Engineering and Executive Policy Diagnostics
Our economic analysts built high-fidelity predictive modeling systems to thoroughly test the trust fund's long-term runway. We executed 27 complex economic forecasting variations utilizing the Department of Labor’s UNIS-X architecture, integrated Bureau of Labor Statistics (BLS) data blocks, and factored in Moody’s Analytics macro-baselines to simulate workforce shock scenarios ranging from 10% to 50%. We then compiled these findings into clear, executive policy memos to equip municipal leadership for legislative action.
03. Impact
Catalyzing Modernized Policy and Data-Driven Financial Oversight
Our detailed stress-testing successfully mapped a clear path to long-term trust fund solvency. By personally briefing the Mayor’s Office, the City Council, and the Office of the Chief Financial Officer (OCFO), we provided the definitive economic justification to propose a change to the City's taxable wage base and expand weekly benefit metrics. To ensure continuous oversight, we deployed an interactive suite of analytical dashboards, empowering current leadership with modern decision-making tools.
1-3%
Forecast Accuracy
3
Legislative Changes Suggested to Maintain Solvency
6
Scenario Planning Interactive Dashboards
27
Complex Financial Solvency Model Runs
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