Many states are paying unemployment benefits with their own unemployment benefits. 30+ states are borrowing their way into higher taxes & lower benefits in the next decade. When states can’t find work to tax they have to borrow from their safety net, the federal government.
A prime example Missouri estimates to borrow 2+ billion dollars by 2014 from the federal government. QOTD: For anyone from a state borrowing, do you agree with borrowing money to pay unemployment benefits?
If you wonder if this question affects you here is the list of 33 states borrowing to pay unemployment benefits:
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Vermont, Virgin Islands, Virginia & Wisconsin
Tennessee is expected to need unemployment benefits in the next month too…Also Hawaii, West Virginia & Iowa have less than 5 months of UI funds left.
A deficit is a deficit so regardless the states would need to borrow money. But should they use the money to pay for unemployment verse education or small business loans to help stimulate the state economy?
If you click you’ll open up a quick peak at the National Employment Law Project State Unemployment Benefit Update from April 2010
QOTD: What do you think? Do you agree with borrowing money to pay unemployment benefits? Or do you see a better use of the money?
To see the video version of this podcast click here: iLostMyJob.com/Monday