Authority: Title 60.2, Chapters 1 through 6, Code of Virginia.
A. Revenues deposited into the Special Unemployment Compensation Administration Fund shall be used for the purposes set out in the following order of priority: 1) to make payment of any interest owed on loans from the U.S. Treasury for payment of unemployment compensation benefits 2) to support essential services of the Commission, particularly in the event of reductions in federal funding; 3) to finance the cost of capital projects; and 4) to fund the discretionary fund established in § 60.2-315, Code of Virginia. Funding may be transferred from the capital budget to the operating budget consistent with this language.
B. Reed Act funds distributed by the Balanced Budget Act of 1997 and credited to the unemployment trust fund with respect to federal fiscal years 2000, 2001, and 2002, under § 1103 of the Social Security Act (42 U.S.C.), as amended, shall be used only for the administration of the unemployment compensation program, under the direction of the Virginia Employment Commission and shall not be subject to the requirements of § 60.2-305 of the Code of Virginia.
C. There is hereby appropriated out of the funds made available to this state under § 1103 of the Social Security Act (42 U.S.C.) as amended, the balance of the $51,061,866 of Reed Act funds, if any, provided in Item 120 E. of Chapter 847, 2007 Acts of Assembly, for upgrading obsolete information technology systems, to include staff costs. This appropriation is subject to the provisions of § 60.2-305, Code of Virginia. Savings as a result of the new systems shall be retained by the commission.
D. There is hereby appropriated out of the funds made available to this state under § 1103 of the Social Security Act (42 U.S.C.), as amended, the balance of the $8,300,000 second year of Reed Act Funds, if any, provided in Item 125 C. of Chapter 781, 2009 Acts of Assembly, to be used under the direction of the Virginia Employment Commission, and notwithstanding the requirements of § 60.2-305 A.2.b., Code of Virginia, for the purpose of administering the federal Wagner-Peyser Job Service Grant and the federal Unemployment Insurance Grant.
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. It is the intent that sufficient general fund and nongeneral fund appropriation be provided in FY 2013 for an anticipated interest payment due September 30, 2012, to the federal government.