California Jobless Payments Drop By Half

Thursday, 09 Aug 2012 02:16 PM

By Alec Weisman

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
California issued $1 billion in unemployment payments in June, a 50 percent decline from the peak two years ago, according to the state Employment Development Department.

Some of the decline comes from fewer unemployed workers, according to the Orange County register, which noted that about 1.97 million are currently out of work compared to 2.26 million in June 2010.

But the drop in payments came primarily because the state failed to meet federal eligibility requirements in April extending benefit to a maximum of 99 weeks, the Register reported.

As a result, the state cut payments to a maximum of 79 weeks, forcing a cut in benefits to some 90,000.

Thousand of others are expected to lose their benefits as well each month, if Congress follows through a plan to reduce unemployment payments to a maximum of 72 weeks. According to California officials, 709,000 people now receiving benefits across the state still remain unemployed after more than a year.

The state unemployment trust fund ran out of money in January 2009 and had borrow $10 billion from the federal government to continue making benefit payments. Repayments on the loan began last year by using revenue borrowed from the California disability insurance trust fund, which will have to be repaid within four years.

To help erase the debt, employers are now paying $77 per worker in federal payroll taxes, up $21 from what they were being charged last year. The cost to employers statewide is expected to total $290 million this year and will double to $580.9 million in 2013.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Send me more news as it happens.
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Cambodia HIV Outbreak: 100-Plus People Diagnosed; Investigation Sought

Friday, 19 Dec 2014 18:50 PM

More than 100 HIV infections in a single Cambodian village have spurred the country's prime minister to ask for an inves . . .

Slender Man Case: Two Girls Competent to Stand Trial in Stabbing

Friday, 19 Dec 2014 18:26 PM

Two girls who allegedly stabbed a 12-year-old friend over the online game Slender Man are competent to stand trial for a . . .

Kate Upton Sexiest Woman Alive; Model Apologizes to Teen Brother

Friday, 19 Dec 2014 17:52 PM

Model Kate Upton was selected as People magazine's first Sexiest Woman Alive, a month after Chris Hemsworth received the . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved