SENATE CONCURRENT RESOLUTION NO. 87

(By Senators McCabe, Browning, Hall, Foster, Prezioso and Klempa)

Urging the West Virginia Congressional Delegation not to support a proposal that waives interest payment on unemployment loans.

    Whereas, A proposal has been made to give states a waiver on interest payments due on loans by states from the federal government to cover unemployment shortfalls in certain states; and

    Whereas, In 1990 the Advisory Council on Unemployment Compensation reported “It would be in the interest of the nation to begin to restore the forward-funding nature of the unemployment insurance system, resulting in a building up of reserves during good economic times and a drawing down of reserves during recessions”; and

    Whereas, Two national commissions and a series of government audits also warned states not to let reserves for unemployment insurance be reduced to ensure that funding was adequate during economic downturns; and

    Whereas, The State of West Virginia acted responsibly and ensured that its unemployment trust fund was able to weather economic downturns; and

    Whereas, Despite warnings, approximately thirty states did not ensure that their unemployment trust funds were adequately funded and were forced to borrow money from the federal government in order to cover unemployment shortfalls in such states; and

    Whereas, Due to the fact West Virginia has been responsible and did not dilute the balance of its unemployment trust fund, West Virginia is one of twenty states that has not borrowed funds from the federal government; and

    Whereas, Waiving the interest on loans from the federal government to those states that did not ensure that their unemployment trust funds remained at an appropriate level, despite several reports and warnings to the contrary, eliminates the consequences of those states making a fiscally irresponsible decision; and

    Whereas, Waiving the interest on loans from the federal government to such states sends a message to fiscally responsible states such as West Virginia that being fiscally responsible is not in its best interest; and

    Whereas, It is in the best interest of the State of West Virginia and the United States to require the states that borrowed money from the federal government to pay all interest to the federal government on such loans; therefore, be it

    Resolved by the Legislature of West Virginia:

    That the West Virginia Congressional Delegation is urged not to support a proposal that waives interest payment on unemployment loans; and, be it

    Further Resolved, That the Legislature finds that any such action taken by the federal government would reward fiscally irresponsible behavior and would encourage fiscally responsible states like West Virginia to not take such fiscally responsible behavior in the future; and, be it

    Further Resolved, That the Legislature encourages the members of the West Virginia Delegation to the Congress of the United States and the President of the United States to oppose such action; and, be it

    Further Resolved, That the Clerk of the Senate is hereby directed to forward a certified copy of this resolution to the members of the West Virginia Delegation to the Congress of the United States and the President of the United States.