HOUSE CONCURRENT RESOLUTION NO. 109
(By Delegates Fleischauer, Argento, Beach, Brown, Caputo, Doyle,
Hatfield, Klempa, Louisos, Moye, Rodighiero, Swartzmiller and
Talbott)
Requesting the Joint Committee on Government and Finance to study
the advisability of enacting legislation to modernize the
unemployment insurance program resulting in $33.2 million in
additional federal stimulus funds to West Virginia.
Whereas, The enactment of the American Recovery and
Reinvestment Act of 2009 provides for $33.2 million in available
stimulus money to West Virginia for its adoption of key reform
measures designed to provide unemployment insurance coverage to
jobless workers who are currently ineligible for these benefits;
and
Whereas, Unemployment compensation benefits is the primary
safety net program enacted by the federal government in 1935 to
provide transitional cash benefits to jobless workers in order to
prevent the disruption of families and local economies during
periods of increased unemployment; and
Whereas, The unemployment rate has increased from 4.4 percent
in December 2008 to 7.5 percent (seasonally unadjusted) in February 2009, the economic contraction in West Virginia will force
thousands of additional layoffs leaving workers, their families and
the local economy in dire straits; and
Whereas, The American Recovery and Reinvestment Act of 2009
would require West Virginia to first adopt the reform of providing
for an alternative base period instead of the present standard base
period thus, improving the ability of jobless workers to qualify
for benefits. Currently, the standard base period, three months of
earnings prior to filing for unemployment compensation, is ignored
in making a determination for eligibility. The enactment of this
base reform would secure one third of the federal stimulus money
totaling $11 million. This reform measure would benefit
approximately 500 West Virginia workers and cost the state $0.8
million; and
Whereas, The American Recovery and Reinvestment Act of 2009
would allow West Virginia to choose among two of the four remaining
reforms such as jobless workers who can only find part-time work.
According to the U.S. Department of Labor, the number of workers
accepting part-time work in lieu of preferred full-time work has
increased 83 percent since 2006. This provision would help
approximately 1,800 West Virginia workers and cost the state $2.3
million. The adoption of at least two of the possible four
available reforms would also provide West Virginia with its
remaining share of $22 million in federal stimulus money up front; and
Whereas, The American Recovery and Reinvestment Act of 2009
would also allow West Virginia to allow modifications to its "good
cause" exceptions to voluntary unemployment by allowing workers to
quit their jobs in order to prevent instances of domestic violence
or, to follow a trailing spouse who has to relocate in order to
find work elsewhere, and finally, to allow workers the opportunity
to take care of their sick or elderly family member. The inclusion
of this reform would benefit approximately 500 West Virginia
workers and cost the state $1.4 million; and
Whereas, The American Recovery and Reinvestment Act of 2009
would also allow West Virginia workers to enter into a certified
training program in order to strengthen their job skills so they
may be able to find work in another job growth industry; and
Whereas, The American Recovery and Reinvestment Act of 2009
would also allow West Virginia the opportunity to provide
supplemental unemployment compensation benefits of $15 to jobless
workers with dependents, up to three children; and
Whereas, The $33.2 million in federal stimulus money would be
enough money to pay for these additional reform benefits for seven
years and provide West Virginia with an opportunity to weather the
immediate economic storm now confronting it; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby requested to study the advisability of enacting legislation to
modernize the unemployment insurance program resulting in $33.2
million in additional federal stimulus funds to the state; and, be
it
Further Resolved, That the Joint Committee on Government and
Finance report to the Legislature on the first day of the regular
session, 2010, on its findings, conclusions and recommendations
together with drafts of any legislation to effectuate its
recommendations; and, be it
Further Resolved,That the expenses necessary to conduct
this study, prepare a report and the drafting of necessary
legislation be paid from legislative appropriations to the Joint
Committee on Government and Finance.