Missouri Labor Commission is asking the Attorney General whether it can go into more debt to cover the obligations of business. Molly Boland has more from Jefferson City.
Wrap: The Missouri Labor Commission talked about how to get the state's Unemployment Insurance Fund out of debt.
The Missouri Chamber of Commerce Taxation Director Tracy King says bonding is a better option than high business taxes.
|Description: "It would be something that they could budget for. So you wouldn't see the peaks and vallies of increased taxes through the loss of the federal unemployment tax credits, you would see a pretty steady a steady flow of repayment."|
Labor Commission members agreed to ask Missouri Attorney General Chris Koster whether bonding is legal solution.
Koster is one of five members of the only group in the state that can approve such a bond.
From Jefferson City, I'm Molly Boland.
The Missouri Labor Commission is considering bonding as a solution to its unemployment funding shortage.
Wrap: Missouri didn't have enough money in the bank to pay unemployed workers when the recession hit.
Now the state's had to borrow three quarters of a billion dollars.
It could get up to two billion.
The Missouri Chamber of Commerce Taxation Director Tracy King is in favor of bonding to pay off the debt.
|Description: "Interest rates right now for the bonding is lower than the federal interest rate that would be required to pay back form these loans. So it is an interest savings that can help minimize the cost of the employers."|
Members say they'll ask Missouri's attorney general if bonding is a legal solution.
From the state Capitol, I'm Molly Boland.
As Missouri borrows more money from the federal government to cover unemployment funding, the state's Labor Commission considers quicker ways to pay it back. Molly Boland has more from Jefferson City.
Wrap: The Missouri Labor Commission says the state may eventually fall nearly $2 billion in debt to keep paying unemployed workers.
The commission says it's considering bonding as one option.
Missouri Chamber of Commerce Taxation Director Tracy King supports bonding but says it's not up to the commission.
|Description: "Ultimately this decesion lies with the BUFF board the, board of unemployment fund financing, to decide if they will bond or if they're just going to let the status quo repayment happen which is the loss of the federal unemployment taxes."|
Commission members say they'll seek Attorney General Chris Koster's opinion of whether bonding is a legal option.
Faced with debt in 2004, the commission was told it wasn't legal.
From the Jefferson City, I'm Molly Boland.