HB 5237
Maintaining the solvency of the Unemployment Compensation Fund
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- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill allows the Governor of West Virginia to temporarily borrow money from the state’s Revenue Shortfall Reserve Fund to bolster the Unemployment Compensation Fund. Specifically, the Governor can borrow up to $50 million if the Unemployment Compensation Fund balance falls below $50 million, with the intention of ensuring benefits can continue to be paid. The borrowed funds must be used solely for unemployment benefits and will be repaid within 180 days from the Revenue Shortfall Reserve Fund, using excess funds or other legally available sources. The borrowing authority is capped and expires in 2027.
Key provisions
- The Governor can borrow up to $50 million from the Revenue Shortfall Reserve Fund.
- Borrowing is permitted only when the Unemployment Compensation Fund balance is below $50 million.
- Borrowed funds must be used exclusively to pay unemployment benefits.
- Repayment must occur within 180 days from the withdrawal of funds.
- Repayment will be made from excess funds in the Unemployment Trust Fund or other legally available sources.
- The Governor must notify the legislature in writing before borrowing funds.
- The Governor must receive a projection from Workforce West Virginia indicating a shortfall within 30 days.
- The borrowing authority expires on September 1, 2027.
Who is affected
- Unemployed West Virginia Residents
- The State of West Virginia
- The Unemployment Compensation Fund
- The Governor of West Virginia
- The Legislature of West Virginia
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