Calif. Borrows $40M A Day To Pay Unemployment
LOS ANGELES (AP) — With one in every eight workers unemployed and empty state coffers, California is borrowing billions of dollars from the federal government to pay unemployment insurance.
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California Borrows Billions To Pay For Unemployment
The Los Angeles Times reports that the state owes $8.6 billion already, and will have to come up with a $362-million payment to Washington by the end of next September.
The continued borrowing means federal unemployment insurance taxes are going to increase, upping the annual payroll costs $21 a year per worker.
California tops the list of 32 states that have borrowed a total of $41 billion to pay claims.
The state took out its first loan from the federal government early last year, to deal with rising payment of benefits and number of claims.
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