Is North Carolina’s unemployment benefit borrowing accounted for in the 2009-2010 state budget?

Rise in benefits for jobless may require more borrowing

 

…the state's Unemployment Trust Fund…ran dry in February after having a balance of $400 million as recently as October.

 

…As of Wednesday, the state had borrowed almost $900 million interest free from the U.S. Labor Department. 

 

…Tony Plath, a finance professor at UNC Charlotte, said…"…the total cost of unemployment compensation in North Carolina will almost certainly rise in the months ahead with still more increases in the ranks of the unemployed.

 

"…at least figure out how we're going pay current compensatory benefits without borrowing more money to do it…"

 

North Carolina is among the top 10 states in the amount of money borrowed from the federal government to pay its initial unemployment-benefit obligations. Figures are through Wednesday:

 

State - Amount

California - $2.64 billion

Michigan - $2.35 billion

New York - $1.32 billion

Ohio - $1.06 billion

Indiana - $1.03 billion

N.C. - $889.5 million

Pa. - $693.7 million

Wisconsin - $568.1 million

N.J. - $514.8 million

S.C. - $427.3 million

 

Source: U.S. Labor Department

 

Richard Craver

Winston Salem Journal, July 31, 2009