States at Crisis Levels with Unemployment Money
By: Web Producer
Updated: December 8, 2008
Some States at Crisis Levels with Unemployment Money
More than 2.5 million jobs disappeared in 2008, and close to 4 million unemployed workers currently receive unemployment benefits.
Five states currently face critical shortfalls in their trust fund accounts, with reserves of less than three months to cover benefits. Another eight states have reserves of less than six months and six states have less than a year in reserve.
The U.S. Department of Labor recommends that states maintain a balance to sufficiently cover benefits for one year during a typical recession.
Kentucky currently has just 5 months in reserve.
The National Conference of State Legislatures (NCSL) has a new chart on state unemployment trust funds
States pay for unemployment benefits through payroll taxes levied on employers. These taxes are deposited into the federal Unemployment Trust Fund, which maintains a separate account for each state, plus the District of Columbia, Puerto Rico and the U.S. Virgin Islands. Many individual state accounts in the federal fund face shortfalls, due to the increase in claims for unemployment benefits and the decrease in payroll tax revenue caused by job losses. ON THE WEB: http://www.ncsl.org/standcomm/sclaborecon/UIExtension2008.htm
(Copyright 2007 Newsroom Solutions, LLC)
Delivered by Newsroom Solutions
RNS-12-08-08 0947CST
