Illinois also in hock to cover unemployment benefits
Dennis Byrne
16 February 2011
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[This article was syndicated via RSS from Dennis Byrne's Barbershop. The views represented do not necessarily represent those of the Chicago Daily Observer.]
To ensure that state continue to pay unemployment benefits, they can borrow billions from the federal government. Thanks to our state leaders' (Democrats) gross financial mismanagement, it's not only the pension funds of retired teachers and state workers that are in this fix. Illinois had to borrow some $2.5 billion to help support Illinois' unemployed workers.
Here's how it works, according to the National Conference of State Legislatures:
The Federal Unemployment Account (FUA) provides for a loan fund for state unemployment programs to ensure a continued flow of benefits during times of economic downturn. According to the U.S. Department of Labor, Employment and Training Administration, 30 states and the U.S. Virgin Islands are currently borrowing to cover unemployment benefits. Five states, Maryland, New Hampshire, South Dakota, Tennessee and Texas, have repaid their loans in full.
Illinois, of course, is among the 30. It began borrowing in 2009 and has run up a tab to the tune of $2,548,629,381.54. Altogether, the 30 states have borrowed $42,250,815,081.08 from the federal fund.
States that are broke borrowing from the federal government, which is broke. Makes sense.
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