CALIFORNIA
The state fund that pays unemployment benefits to laid-off workers is projected to go broke in two weeks, without a bailout from the federal government.
With the jobless rate in California — and the Sacramento region — at its highest level in almost 15 years, the fund was down to $619 million Monday, paying out $34 million a day in benefits, state Employment Development Department spokeswoman Loree Levy said.
The agency has requested a federal loan of $1.8 billion to cover benefits through the end of March. That's expected to come through, but the state will likely have to go back to the feds every three months for more money for at least the next year, she said.
"First and foremost, benefits will continue to be paid," Levy said. "It's a just a matter of how."
How is likely to be a combination of higher taxes on employers and fewer benefits to workers.
Unemployment insurance is funded by employers, who pay taxes per employee. Laid-off employees receive maximum benefits of $450 per week, depending on their income. The benefits last 26 weeks, but many unemployed workers qualify for a 20-week extension.
Read full article: http://sacramento.bizjournals.com/sacramento/stories/2009/01/05/story2.html?b=1231131600^1755641&ana=e_vert
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