Unemployment fund $1 billion short
From Missouri Digital News: https://mdn.org
MDN Menu

MDN Home

Journalist's Creed


MDN Help

MDN.ORG: Missouri Digital News
MDN Menu

MDN Home

Journalist's Creed


MDN Help

MDN.ORG Mo. Digital News Missouri Digital News MDN.ORG: Mo. Digital News MDN.ORG: Missouri Digital News

Unemployment fund $1 billion short

Date: April 6, 2009
By: Theo Keith
State Capitol Bureau
Links: HB 1075

Intro: Officials say the state's unemployment insurance fund will be $1 billion short in the coming years, and the House Workforce Committee passed a bill that would lift the borrowing limit.

Theo Keith has more from Jefferson City. 

OutCue: SOC

The House Workforce Committee voted unanimously to remove the $450 million borrowing limit to help the state's bankrupted unemployment fund through the recession.

In February, the fund ran dry.

The state borrowed a quarter of a billion dollars from the federal government to pay unemployed workers through April.

But now, Missouri Chamber of Commerce Taxation Director Tracy King says that isn't enough.

Actuality:  KING3.WAV
Run Time: 00:09
Description: We're expecting that fund to be insolvent to the tune of about $1 billion over the next six years, and that $1 billion is money that employers are going to have to pay back.

King says Missouri can borrow interest free for two years, but that money will eventually come due.

From the State Capitol, I'm Theo Keith, Newsradio 1120 KMOX.

Intro: The House Workforce Committee unanimously passed a bill to lift the state's borrowing limit because Missouri's troubled unemployment insurance fund needs more help.

Theo Keith has more from Jefferson City.

OutCue: SOC
The state's unemployment insurance fund needs $1 billion to continue to pay unemployed Missourians.
Actuality:  MORENO1.WAV
Run Time: 00:08
Description: One thing is for sure, that this is a very serious issue. I think the numbers that we're talking about are historic numbers that we probably haven't experienced in some time.

That's state Labor Department representative Chris Moreno, who says the state can currently only borrow $450 million.
Chamber of Commerce Taxation Director Tracy King says state officials didn't expect a recession like this.
Actuality:  KING4.WAV
Run Time: 00:05
Description: Obviously, if we're looking at a $1 billion insolvency, $450 billion is not gonna cut it.
King says the loans are interest free for the next two years, but businesses will have to pay the money back after that.
From Jefferson City, I'm Theo Keith, Newsradio 1120 KMOX.