East Orange, N.J. – As a rising number of Americans sign up for unemployment benefits, many of the state-funded trusts that pay them are on the decline.
At least 12 of them are on the brink of insolvency. In 20 other states, the funds have lost value, even before the big job losses of the past two months.
While unemployed workers will get their benefits – federal law requires it – the trust fund woes are putting states into a peculiar squeeze. They're loath to raise taxes or cut services in a recession, so many are racking up new loans. That debt burden will affect residents for years to come.
Read full article: http://news.yahoo.com/s/csm/20081211/ts_csm/asafetynet;_ylt=AscdZAsKJoW4hAJhfSkXIUXv5rEF
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