California borrows 40 million a day to pay unemployment. Owes the feds billions

[Liberal_in_LA]

Calif borrows $40M a day to pay unemployment

Associated Press November 7, 2010

With one in every eight workers unemployed and empty state coffers, California is borrowing billions of dollars from the federal government to pay unemployment insurance.

The Los Angeles Times reports that the state owes $8.6 billion already, and will have to come up with a $362-million payment to Washington by the end of next September.

The continued borrowing means federal unemployment insurance taxes are going to increase, upping the annual payroll costs $21 a year per worker.

California tops the list of 32 states that have borrowed a total of $41 billion to pay claims.



Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/11/07/state/n100503S24.DTL&tsp=1#ixzz14cwRClXv

[dkf]

1. Sadly $41 billion doesn't faze me.

I've lost a sense of the value of these kinds of sums. Scary.

[BlueCaliDem]

2. This is the net result of a Repub Governator who allowed Corps to outsource CA jobs

and sending more to the Federal government than taking in, refusing to go after CEOs who don't pay their state taxes (CNET CEO owes tens of millions to the state}, and the continued generous tax breaks and grants afforded corporations like Wal-Mart.