Tags: States | Borrow | Pay | Unemployment

States Borrow From Uncle Sam to Pay Unemployment Benefits

Thursday, 03 Jun 2010 09:11 AM

No fewer than 32 states reportedly have run out of funds to make unemployment benefit payments — and the federal government has been supplying these states with money so that they can make their payments to the unemployed.

In some cases, states have borrowed billions: As of May 20, the total balance outstanding by 32 states (and the Virgin Islands) is $37.8 billion, the Economic Policy Journal reported.

California has borrowed $6.9 billion; Florida has borrowed $1.6 billion; Illinois has borrowed $2.2 billion; Indiana has borrowed $1.7 billion; Michigan has borrowed $3.9 billion.

New York has borrowed $3.2 billion; North Carolina ha borrowed $2.1 billion; Ohio has borrowed $2.3 billion; Pennsylvania has borrowed $3 billion; Texas has borrowed $1 billion and Wisconsin has borrowed $1.4 billion.

In Illinois, Democratic legislators are on the verge of passing a state budget that would patch a $13 billion deficit, the Associated Press reports.

Critics call the budget a farce that digs the state further into debt, and even supporters admit it doesn't fix the state's long-term problems.

Though the budget is based on borrowing money and leaving bills unpaid, advocates say it will keep the doors of government open for another year, but they don't claim it resolves the worst budget crisis in Illinois history.

Many in the veritable army of local businesses and charities that provide services to the Illinois state government have been waiting months to be paid for their services, forcing them to cut services, borrow money or even go out of business.

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No fewer than 32 states reportedly have run out of funds to make unemployment benefit payments and the federal government has been supplying these states with money so that they can make theirpayments to the unemployed. In some cases, states have borrowed billions: As...
States,Borrow,Pay,Unemployment
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2010-11-03
Thursday, 03 Jun 2010 09:11 AM
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