2011 Session

Budget Amendments - HB1500 (Conference Report)

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Interest Payment to Federal Government

Item 115 #1c

Item 115 #1c

First Year - FY2011 Second Year - FY2012
Commerce And Trade
Virginia Employment Commission FY2011 $0 FY2012 ($8,900,000) GF

Page 92, line 10, strike "$831,107,231" and insert "$822,207,231".
Page 92, strike line 45 through line 47 and insert:
"E.1.  It is the intent of the General Assembly that the Virginia Liaison Office shall work with the Virginia Congressional Delegation to seek the approval of the Congress to reinstate the policy for deferral of interest on funds borrowed from the Federal Unemployment Account for calendar years 2011 and 2012.
2.  If Congress does not extend the deferral of interest, the Comptroller shall reserve  $8,900,000 on the balance sheet for the general fund attributable to fiscal year 2011 general fund revenue collections in excess of the official revenue estimate and discretionary general fund balances recommended for reversion by the Governor for such repayment.  In addition, the remaining interest amounts that would be due by September 30, 2011, estimated at $3,000,000, shall be paid from nongeneral fund amounts provided in this Item."

(This amendment requires the Virginia Liaison Office to seek the continued deferral of interest payments to the federal government. To date, Virginia has borrowed $347.0 million from the Federal Unemployment Account to cover shortfalls in the Unemployment Insurance Trust Fund due to an unprecedented number of unemployment claims. Congress forgave the interest accrual in 2010 but the deferral ended on January 1, 2011. If Congress does not extend the deferral, Virginia will owe an interest payment to the federal government of $11.9 million due September 30, 2011. This amendment also provides for a contingent appropriation for the interest payment if Congress does not extend the deferral.)