Commonwealth of Virginia 2008 Budget Document: Agency Details

The 2008 Executive Budget Document

Virginia Employment Commission

http://www.vec.state.va.us/

Mission Statement

Mission Statement: The Virginia Employment Commission’s mission is to promote economic growth and stability by delivering and coordinating workforce services to include: policy development; job placement services; temporary income support; workforce information; and transition and training services. To accomplish our mission, we will: partner with our stakeholders; develop and empower staff; improve our processes; embrace innovative solutions and technologies; and continually renew our organization.

Operating Budget History

	General Fund	Nongeneral Fund	Positions
2005 Appropriation	$ 180,637	$ 597,067,403	1,068.50
2006 Appropriation	$ 80,637	$ 571,774,099	1,042.50
2007 Appropriation	$ 82,167	$ 612,590,467	1,037.50
2008 Appropriation	$ 82,167	$ 624,722,601	1,037.50

New Operating Budget Summary

	General Fund	Nongeneral Fund	Positions
2009 Base Budget	$ 82,167	$ 624,722,601	1,037.50
2009 Addenda	$ (81,680)	$ (44,502,227)	(172.50)
2009 Total	$ 487	$ 580,220,374	865.00

2010 Base Budget	$ 82,167	$ 624,722,601	1,037.50
2010 Addenda	$ (81,680)	$ (39,502,226)	(172.50)
2010 Total	$ 487	$ 585,220,375	865.00

Recommended Operating Budget Addenda

Distribute Central Appropriations amounts to agency budgets
Adjusts the agency budget to reflect amounts moved from Central Appropriations to cover the cost of items such as the continuation of 2007 and 2008 salary and health insurance premium increases, as well as changes in retirement and disability contribution rates and other centrally funded items. For each year, $487 (GF) and $5.8 million (NGF).

Decrease appropriation to reflect reduced federal grant funding
A technical adjustment to reduce the administrative funding for the agency to reflect a decrease in federal support due to decreased workloads resulting from low unemployment and greater efficiencies anticipated as a result of opening One-Stop customer contact centers. For 2009, a decrease of $9.6 million (NGF) and 134.5 positions. For 2010, a decrease of $9.6 million (NGF).

Continue 2008 budget reductions
Continues the budget reductions included in the Governor's 2008 reduction plan into the 2008-10 biennium. For each year, a reduction of $82,167 (GF).

Capture savings associated with reduced check processing costs
Captures the savings from check processing costs because the agency has switched to paycards for payment of unemployment benefits. For each year, a reduction of $106,665 (NGF).

Realign labor market information grant
A technical amendment to realign federal grant funding between service areas to better reflect the agency's strategic plan.

Transfer Workforce Investment Act funding and positions
As part of the Commonwealth's restructuring of workforce services, the Virginia Community College System will become the grant recipient and fiscal agent for federal Workforce Investment Act funding as of July 1, 2008. This adjustment transfers the funding and positions to implement the restructuring. For 2009, a decrease of $47.2 million (NGF) and 38 positions. For 2010, a decrease of $47.2 million (NGF).

Transfer the Workforce Innovation in Regional Economic Development grant as part of workforce restructuring
As part of the Commonwealth's restructuring of workforce services, the Virginia Community College System will become the grant recipient and fiscal agent for federal Workforce Innovation in Regional Economic Development funding as of July 1, 2008. This adjustment transfers the second and third years of the three-year performance grant for training services. For 2009, a decrease of $1.7 million (NGF). For 2010, a decrease of $1.7 million (NGF).

Allocate federal Reed Act funds for administration of employment security services
Allows federal Reed Act funds to be used for employment services administration. The funding will allow the agency to continue to provide services for employers and workers. For each year, $8.3 million (NGF).

Appropriate penalty and interest funds to support administration of employment security services
Provides funding from the penalty and interest fund for operational support of the agency, including rent payments, facility maintenance, and information technology. For 2010, $5.0 million (NGF).

Extend language for upgrading obsolete information technology system
A language only amendment to allow Reed Act funding to be used to continue upgrading the obsolete benefits administration computer system.

Capital Totals for the Biennium

General Fund 2008-10 Biennium	Nongeneral Fund 2008-10 Biennium	Debt 2008-10 Biennium
$ 0	$ 3,600,000	$ 0

Recommended Capital Budget Addenda

Institute One-Stop Centers
Provides funds for an umbrella capital project to consolidate and relocate local offices into the One-Stop Customer Service Centers for employment security services and workforce services. The project will be funded from the penalty and interest revenue that the agency collects from unemployment taxes on businesses. For the biennium, $3.6 million (NGF).