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  • State Will Begin Borrowing Money Thursday...

    http://www.news-leader.com/article/2...OGS09/90225049

    State will begin borrowing money Thursday to pay jobless benefits

    Missouri's unemployment fund has been tapped dry

    By Chad Livengood • [email protected] • February 25, 2009

    JEFFERSON CITY — Missouri will begin borrowing money on Thursday from the federal government to bailout its insolvent unemployment trust fund.

    Department of Labor and Industrial Relations will take out a $15 million loan to pay out benefits to the 219,000 jobless Missourians for the rest of the week, said Wanda Seeney, spokeswoman for the state agency.

    The number of individuals filing for unemployment has spiked in recent months, causing a cash crunch in the fund, officials said.

    On Monday, the fund was down to $9 million, Seeney said.

    For the rest of February and all of March, the department expects to borrow $260 million in interest-free loans from the federal government, Seeney said.

    "We have more people who are applying for unemployment, so that means more money being drawn out from the fund,” Seeney said.

    The department expects to see an influx of first quarter payments into the unemployment insurance trust fund at the end of March, which should alleviate the need to borrow money after April, Seeney said.

    "We don’t think there will be a need ot borrow beyond April, into May,” she said.

    The last time Missouri borrowed money to bailout the unemployment fund was the 2003-2004 fiscal year, when the state took a $288 million loan from the federal government.

    As of December, the unemployment rate in Missouri was 7.3 percent.

    Missouri is one of ten states in the country seeking loans from the federal government to keep unemployment benefit checks going out in the mail.

    Just last week, Gov. Jay Nixon announced that he had signed a deal with the federal government to draw down an extra $25 dollars a week for every jobless recipient through the president's economic stimulus bill. The extra money came with no strings attached.

    In a statement, labor department Director Lawrence Rebman said it was essential to borrow money so that unemployment checks could arrive on time to those out of work.

    But because our projections show that claims for benefits will outpace the current fund balance, I have requested authority to draw down funds beginning in February and as needed to pay benefits to unemployed workers in Missouri. Missourians should take comfort in knowing they will receive the benefits to which they are entitled," Rebman said in a statement.

  • #2
    this is not the last of it, I'm sure, nor the only state that's in this position.
    "Be Excellent to Each Other"

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    • #3
      RI Gets $75M Loan to Replenish Unemployment Fund

      Here is another...

      http://www.forbes.com/feeds/ap/2009/...ap6136616.html

      RI gets $75M loan to replenish unemployment fund
      Associated Press, 03.06.09, 01:49 PM EST

      Rhode Island will receive a $75 million interest-free line of credit from the federal government to replenish a state unemployment fund depleted by double-digit joblessness.

      Gov. Don Carcieri's administration said Friday that Rhode Island is the eleventh state to apply for such assistance. (hmmm, I missed a few :))

      A sinking economy has seriously strained the state unemployment insurance trust fund run by the Department of Labor and Training. Unemployment in Rhode Island stood at 10.3 percent in January.

      The state paid out more than $38 million in unemployment benefits in February. By Monday, the account's balance had dipped to about $24 million.

      Rhode Island borrowed nearly $130 million from the federal unemployment trust fund during an economic downturn from 1975 to 1980.

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      • #4
        I heard on the radio this morning that North Carolina was holding off sending some tax refund checks out for a week or two. They want to insure that they have enough cash flow for the same reason. I was suppose to get mine today.. Darn-it! And the Winston-Salem Gun show is tomorrow. Guess I'll have to borrow some cash from my son's College kitty. (smile)
        Just Kidding.. PF
        "And with a collection of minds and talent, they survived"

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        • #5
          Originally posted by pathfinder3081 View Post
          Guess I'll have to borrow some cash from my son's College kitty. (smile)
          Just Kidding.. PF
          You mean we aren't supposed to do that? :eek: There goes my plans for the casino tonight. :(

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          • #6
            Washington state has been alotted an amount from NObama's "stimulus plan", and I have a burning question that I'd like to shove in the face of every single political arsewhype, commissioner, senator, legislator, and even the big cheese himself:

            All of this stimulus money will be going to government-run agencies and foundations...how is giving a bunch of money to cities to build roads supposed to stimulate the economy, and, how is having a freshly paved road or newly renovated state official office supposed to keep "Bob" down the street employed?

            Why is Obama wanting to "create new jobs"? I thought the jobs people were losing needed to be saved before you start making new ones.

            And, why is it that the people have no say over where THEIR money goes? Shouldn't there be a vote on what actually happens with this money, since we already had no choice of putting it out there?

            Geez I'm irritated.
            "Reject the basic assumptions of civilization, especially the importance of material possessions." "The things you own end up owning you"-Tyler Durden

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            • #7
              Sorry Visine, you cannot work for the government. They do not hire rational people. ;)

              It IS all really frustrating and irritating! :mad:

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