Here Comes the Unemployment Bailout. No Seriously.

Tuesday, December 22, 2009 , , 4 Comments

"By 2011, according to Department of Labor estimates, 40 state funds will have been emptied by the jobless tsunami."


The recession's jobless toll is draining unemployment-compensation funds so fast that according to federal projections, 40 state programs will go broke within two years and need $90 billion in loans to keep issuing the benefit checks.

The shortfalls are putting pressure on governments to either raise taxes or shrink the aid payments.

Debates over the state benefit programs have erupted in South Carolina, Nevada, Kansas, Vermont and Indiana. And the budget gaps are expected to spread and become more acute in the coming year, compelling legislators in many states to reconsider their operations.

Currently, 25 states have run out of unemployment money and have borrowed $24 billion from the federal government to cover the gaps. By 2011, according to Department of Labor estimates, 40 state funds will have been emptied by the jobless tsunami.

Clearly this is a problem. If I have to explain why, you are welcome to head to the very back of the unemployment line and promptly kiss my employed ass.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


W.C. Varones said...

You think those states are bad, check out California.

We're already $5 billion in the hole to the Feds, and heading into the $20 billions in the next couple years. And we actually have to pay it back on top of the other huge double-digit billions deficit.

And I don't mean "pay it back" like AIG, GMAC, GM, and Fannie and Freddie "wink-wink ha-ha sure we'll pay it back." I mean we really have to pay it back.

On the other hand, this is Obama we're talking about and he'll probably bail out all the states and just pass the bill to our kids.

stonecutter said...

Ha! Ha! Ha! The F****#s doubled my SUTA as of 1/1/10


this is jr deputy accountant, you better let that entire word fly. It's "HAHAHAHAHA THOSE MOTHERFUCKERS" around here, k?

Isn't awesome that we all get punished for this? As an excessively employed person, I feel your pain.

It has to come from somewhere...

Anonymous said...

It has been a free ride (cool Foghat song) up until now. Many states are in Uncle Sam's pockets for money they borrowed to pay unemployment claims. If I understand things correctly, according to the terms, the states must pay Uncle Sam interest costs on the money borrowed starting in 2011. Beware of Greeks bearing gifts.