The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Monday, February 3, 1997              TAG: 9702020004
SECTION: FRONT                   PAGE: A10  EDITION: FINAL 
TYPE: Letter 
                                            LENGTH:   41 lines

UNEMPLOYMENT BENEFITS: SETTING THE RECORD STRAIGHT

I write to correct an inaccuracy and express an opinion regarding the Jan. 27 editorial about making unemployment insurance benefits available to more Virginians. The editorial indicated, ``Specifically, Virginians must earn at least $3,250 during a two-quarter base period in order to qualify for benefits.'' This is not correct. In Virginia, the base period is four calendar quarters, during any two of which the minimum earnings must be obtained. For example, a Virginia worker may earn $2,000 anytime in January through March, perform no more work until earning $1,250 at any time in October through December and still qualify for benefits.

This example is instructive because it shows that even under the current system, a person can be unemployed and earning no wages for the great majority of the year and still qualify. Unemployment insurance has been available to Virginians since the late 1930s. It has always been paid, as the courts have frequently written, to workers who have demonstrated a substantial commitment to the work force and are unemployed through no fault of their own. It has never been intended as a pure benefits program to bridge the gap for people emerging from the welfare system or for part-time workers who have not demonstrated a substantial commitment to the work force.

The program has worked well for more than 60 years. That there presently exists a substantial balance in the unemployment compensation trust fund is a credit to Virginia's stable economy and the effective monitoring and administration of the trust fund by the Virginia Employment Commission, now and over the years. In 1981, the commission recommended a funding review that was necessary to ensure the solvency of the trust fund.

Now, it may be appropriate to effect another change that would reduce an unnecessarily large balance. Such changes to the funding formula may be necessary from time to time, but I believe it is not necessary to change, and certainly not substantially so, the basic premise of the program by expanding its applicability to people whose earnings or efforts have not met long-established standards.

ROBERT J. BARRY

Norfolk, Jan. 27, 1997


by CNB