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State could lose $1 billion of federal money

December 10, 2002
By: Robert Sandler
State Capital Bureau

The state of Missouri stands to lose more than a billion dollars if it doesn't change its unemployment law. Robert Sandler has the story from Jeff.

A federal Labor Department rule requires states to give some exemptions in unemployment insurance to Indian tribes.

The federal rule still applies to Missouri even though the government doesn't recognize any Indian tribes in the state.

But Missouri law doesn't yet give those exemptions. Ballwin Republican Representative Neal St. Onge said the results could be devastating if state law doesn't change.

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If the state doesn't change its law, it would also stand to lose federal money to cover shortfalls. In total, the state could lose more than a billion dollars if these changes aren't passed. From Jefferson City, Robert SAndler, KMOX News.

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Missouri could lose more than a billion dollars in federal money if changes to the state unemployment law aren't passed. Robert Sandler has the story in Jeff.

Federal labor regulations require that states give exemptions on unemployment insurance to Indian tribes. Missouri law doesn't yet give those exemptions.

The penalties would include cutting federal tax credits to businesses and the state no longer being able to borrow from the federal government to fix the unemployement fund.

Ballwin state Representative Neal St. Onge says if the state doesn't pass the changes, the results would be devastating.

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From Jefferson City, Robert Sandler, KMOX.

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Missouri could lose a billion dollars if the state doesn't change its unemployment law to give exemptions to some Indian tribes. Robert Sandler has more from Jeff.

The federal Labor Department requires that states give some exemptions on unemployment insurance for American Indians.

Missouri, however, doesn't give those exemptions.

If the state doesn't pass changes, the federal government could pull almost a billion dollars in tax credits to businesses. The state also could be prevented from borrowing money to fix the unemployment program.

State representative Neal St. Onge of Ballwin says the state must pass the changes or face tough consequences.

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From Jeff, Rob, KMOX.