Monday, November 8, 2010

California borrows $40 million a day from federal government to pay Unemployment Insurance

California is headed toward insolvency, and with the state borrowing big bucks to send out unemployment checks, the state's politicians have no idea how to create private sector jobs.  Jim Hoft posted this info from 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.

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.


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