Virginia’s unemployment trust fund could be $750 M in the red

From $1 billion in the black to millions in the red.

“You’ll see a negative ($750 million) dollars, which is a projection. If we get to that it will be a record low trust fund balance,” said Virginia Employment Commissioner Ellen Hess explaining how the trust fund used to help pay unemployed workers could have a $750 million deficit if current virus-related trends continue.

Record numbers of Virginians filing for help due to being furloughed or permanently laid-off from their job due to the virus outbreak have caused the fund to shrink to just $500 million since January.

Hess said the fund must become 50 percent solvent to sustain demands.

“Suffice to say, if the federal government does not act, there will be significant impact to Virginia businesses come January,” she said.

(GRAPHIC: Virginia Employment Commission / Commonwealth of Virginia)