Jobless Claims All-Time High As States Borrow Money

The government checks that keep the average American a float are running out fast. The reason why? The United states is obligated to pay benefits to the swelling ranks of jobless Americans are piling debt onto strained state budgets. Fifthteen states have depleted there unemployment insurance funds so, far forcing them to borrow from the United States Treasury. A record 30 out 50 states are expected to have to borrow up to 17 billion dollars next year said Rick McHugh National Employment Law Project, a nonpartisan advocacy group. We are setting the stage for big pressure for states restrict eligibility and benefits levels McHugh said, Those type of restrictive actions undercut "The Depression Era programs" economic and social stability purpose. The state run unemployment insurance programs are normally, financed with payroll taxes paid by employers on each worker. But the funds tax revenue are falling as at the same time benefits demands are rising. Nine million Americans are receiving job benefits, triple the number who got checks at the beginning of last year. Experts predict the number of recipients will peak sometime this summer as long-term unemployed run out of benefits, which recently extended to 59 weeks in most cases. The majority of states did not see the recession devastating impact and failed to create a adequate cushion in there unemployment insurance funds may seek a raise in payroll taxes meeting resistance from employers, experts have predicted. State unemployment taxes will have to go up, but unemployment will have to come down said Andrew Stetter of the National Employment Law Project. The 787 Billion dollar stimulus package offered the states 7 billion dollars to expand who qualifies for unemployment benefits, and extend the length of time benefits are paid to 59 weeks from 26 weeks. The package allowed states to borrow money interest free through 2010 but must be repaid. The economy has shed more than 500,000 jobs in each of the first four months this year and the jobless rate is expected to reach 10% by the end of the year. Michigan, which of all states have the highest unemployment rate in May 14.1% has doubled borrowing for it's unemployment insurance fund to more than 2 billion dollars since the beginning of this year. California owes the federal treasury $1.5 Billion and New York owes $1.3 billion up from $358 Billion in January. Jobless benefits are typically about half of the workers last salary. The checks often supplement meager earnings from part-time or temporary jobs. Finally, the federal and state government may have to extend unemployment benefits another 13 weeks because there will be millions of Americans who will run out of benefits. I would love to read your comment about this mounting issue in America.