VA Governor Directs $20M To Unemployment Insurance Program

VIRGINIA — Virginia is expanding the Virginia Employment Commission’s ability to process unemployment claims by investing an additional $20 million in the agency.

Gov. Ralph Northam issued an executive directive Tuesday that requires the VEC to add 300 new adjudication staffers, make technology upgrades, and modernize the state’s unemployment insurance system by Oct. 1.

The Northam administration said the executive directive will speed up the resolution of cases flagged as potentially fraudulent or ineligible.

The $20 million investment will “significantly speed up its adjudication process and immediately implement long overdue technology upgrades,” Northam said in a statement Tuesday. “This action will address many of the issues that have caused delays and ensure that we continue to deliver relief to Virginians who need it.”

If a person’s initial unemployment insurance claim is flagged for potential ineligibility or fraud, federal law requires the VEC to adjudicate the claim before proceeding with payment.

In March, U.S. Sen. Mark Warner (D-VA) sent a letter to Northam urging him to accelerate the state's processing of unemployment insurance claims.

"I worked with a bipartisan and bicameral group of lawmakers in the U.S. Congress to pass a relief package shortly before Christmas because it was understood that loss of benefits at this time of the year would be particularly cruel," Warner said. "Now, several months later, I hope you can agree that for constituents still experiencing delays the lack of pandemic unemployment insurance is unconscionable."

Northam's executive directive requires the VEC to take four immediate actions:

• Set a clear goal for resolving unemployment insurance claims. Northam has directed VEC to increase the number of adjudications being processed per week from 5,700 to 10,000 by June 30 and to 20,000 by July 31, 2021. This will be accomplished, in part, by finalizing a $5 million contract for over 300 additional adjudication officers. VEC is also coordinating with the Virginia Department of Human Resource Management to identify employees across Virginia’s state agencies who can temporarily support VEC.
• Continue investment in Customer Contact Center. Since the onset of the pandemic, VEC has quadrupled its customer service capacity in order to provide information and support to Virginians with questions about their claims. Governor Northam has directed VEC to expedite an additional contract for services and staff to augment the current expansion.
• Modernize the benefits system. Historic claim volume during the pandemic had previously delayed VEC’s progress in modernizing its 41-year-old benefits system. The agency has resumed the project, executing a contract for $5 million in state funding for technology upgrades. Oct. 1 has been set as the target date for completing the final phase of the system. VEC will be implementing additional technology upgrades for customer service in the coming weeks to increase capacity.
• Collaborate with the Virginia congressional delegation to resolve federal funding disparity. States receive unemployment support from the federal government. The amount is based on how much Virginia businesses pay in federal unemployment insurance taxes. For Virginia, that ratio is among the lowest of all states and an increase typically requires businesses to pay more in taxes. This formula has underfunded Virginia’s UI system for years with respect to upgrading technology and maintaining staffing levels.

Low-income Virginians can refer to the Virginia Department of Social Services CommonHelp for guidance on applying for food, cash, childcare and other assistance. Support is also available through the Virginia Career Works Referral Portal for members of the public interested in workforce training, going back to school, or getting a job.