State UI Debt
Do you know how much money state unemployment trust funds owe the federal government for emergency loans?
The answer is that as of February 19, 2010, 27 states and the US Virgin Islands owe a combined sum of $32,323,094,836.53 on outstanding loans from the Federal Unemployment Account. That figure is up more than $22 billion since July 1, 2009. For specifics and the latest figures, click HERE for the US Dept of Labor.
The potential ramifications of this debt on the business community are huge. For example, the Philadelphia Business Journal reports that New Jersey businesses will face a $1 billion payroll tax increase costing $300 to $1000 per employee starting July 1, 2010 if a solution for the UI trust fund gap is not found.
This is a tough, immediate issue without a clear solution. Many chambers are pushing for comprehensive UI reform, but that still leaves 27 states with staggeringly large debts. Please share your thoughts...