2011 Session

Budget Amendments - SB800 (Committee Approved)

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Interest Payment to Federal Government

Item 115 #1s

Item 115 #1s

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 for calendar year 2011 and calendar year 2012 on funds borrowed from the Federal Unemployment Account.
2.  If Congress does not extend the deferral of interest, the Governor is authorized to use $8,900,000 the second year from the general fund from Item 256 of this Act, and  $3,000,000 out of this appropriation the second year from nongeneral funds for payment on interest due September 30, 2011 to the federal government."

(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. )