House Finance Alters, Advances Jobless Benefits Funding Bill (Updated)

The Associated Press (Updated) reports on the House Finance Committee's move Wednesday to "keep jobless benefits flowing with $40 million from an insurance fund, instead of hitting businesses and workers with new charges."

But, as AP reports, "the committee also kept a proposed hike to the wage-based tax that employers already pay toward those benefits, rejecting a GOP-led alternative that would tap the state's emergency reserves."

The article reports that as lawmakers debate options for the trust fund, "the recession has busted funds in 14 other states, including neighboring Kentucky, Ohio and Pennsylvania, forcing them to borrow nearly $8 billion from the federal government as of Monday."

"West Virginia fears its fund won't last the year without more revenues," AP explains. "The state's fund went bankrupt in the 1980s, requiring temporary employer assessments to resolve the resulting federal debt."

AP also reports that the House Republican proposal to raid the 'rainy day' fund would pull its balance below 10 percent of general revenues. Falling below that level would endanger state bond ratings, officials warn, and freeze a series of scheduled cuts to a business tax. GOP lawmakers have argued for removing the latter trigger.

Gov. Joe Manchin proposed the original bill and supports Wednesday's changes, as does the state Chamber of Commerce.