Monday, March 14, 2011

EconomicsWestVirginia: Construction: Industry money threatened by bill to underwrite Unemployment Compensation

7News (WRTF radio) materials posted by EconoMix

Lawmakers Eye Construction Money 

to Shore up Unemployment Fund

Wiliiams report posted Monday, March 7, 2011 ; 02:23 PM 
Updated Monday, March 7, 2011; 02:33 PM

Bill would draw $20 million from a fund set up to pay for a new state revenue building to stabilize the unem-ployment 
compen-sation fund.  by Walt Williams

refWrite:  The dilemmas of USA states that may go belly-up financially create scenarios like this one where state legislators in West Virginia are taking money earmarked for construction (and hence employment for construction workers) to redirect these funds to the Unemployment Compensation fund that has run dry.  No one can solve this mess in a logical fashion; you either put working works to work with pay, or you cancel them out and drive them (back onto) the Dole where they and others will receive the Unemployment Comp dollars, but for a shorter period of time when the UnempoyComp again will run dry, the building won't  be built, and workers won't be permitted to work at what needs to be done.  Obviously, something's got to give. -- EconoMix

Documentation digitally reproduced as evidence:

CHARLESTON -- State lawmakers are looking at shoring up the state’s dwindling unemployment compensation fund by tapping into a separate fund set up to pay for a new building on the Capitol grounds.

The House Finance Committee approved a bill Monday allowing the governor to take up to $20 million from a fund set up to pay for a new state revenue building and use it to prevent the unemployment fund from running dry.

Acting Gov. Earl Ray Tomblin has suggested a similar plan during his State of the State Address in January. However, he proposed taking the money out of the state’s rainy day fund, which is revenue set aside by the state to help cover budget holes in lean times.

State officials are worried the jobless fund could run out this year if the economy doesn’t improve. The state’s unemployment rate currently hovers above 10 percent.

Instead of using the rainy day fund, the committee amended the bill to take the money from $30 million in a fund set up to build a new revenue center on Capitol.

Plans for a new revenue center on the Capitol grounds have been scrapped. Instead, the West Virginia Lottery is moving into the City Center West office building in Charleston.

The money in the building fund comes from lottery revenue. It must be paid back to the original fund within 180 days without interest.

The legislation next goes to the House for a vote by all members.

Copyright 2011 West Virginia Media. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Ridiculous!

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