This bill amends the Code of West Virginia to provide a mechanism for the Governor to borrow funds from the Revenue Shortfall Reserve Fund to maintain the solvency of the Unemployment Compensation Fund. Specifically, it allows the Governor to borrow up to $50 million or the amount necessary to keep the Unemployment Compensation Fund's balance at a minimum of $50 million, whichever is less. The borrowing can only occur after the Executive Director of Workforce West Virginia projects that the fund's balance will fall below $50 million within the next 30 days. The borrowed funds must be used solely for paying benefits and must be repaid without interest within 180 days from the Unemployment Trust Fund or other legally available funds.

Additionally, the bill updates the deadline for borrowing from the Revenue Shortfall Reserve Fund, changing it from September 1, 2018, to September 1, 2027. This extension aims to ensure that the Unemployment Compensation Fund remains adequately funded during periods of federal layoffs that may deplete its resources. The bill emphasizes the importance of maintaining the fund's solvency to support individuals in need of unemployment benefits.

Statutes affected:
Introduced Version: 21A-8-16