5:53 am March 25, 2011, by Henry Unger
Georgia’s fund that sends checks to the unemployed is nearly empty, and legislation in the General Assembly won’t refill it, AJC reporter Dan Chapman writes.
The state may take money from Medicaid and job-creating budgets just to cover the fund’s $24 million interest payment due in October, Chapman reports.
State officials said this week that the legislation, pushed heavily by the tax-averse business community, won’t return the unemployment insurance trust fund to solvency, Chapman writes. So far, the state has borrowed $672 million from Washington to pay tens of thousands of unemployed Georgians. And the tally rises daily.
More than 191,000 Georgians — one of every three jobless people in the state — received unemployment insurance payments last week, according to the Labor Department. The average payment is $269 per week. Labor officials say all jobless recipients will be paid, regardless of the state’s depleted trust fund, Chapman reports.
The recession’s double-digit unemployment, combined with insufficient tax contributions from employers, depleted the trust fund, Chapman writes. Georgia’s wounds, though, are self-inflicted after the state halted payments into the fund by most employers more than a decade ago.
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- Henry Unger, The Biz Beat
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