Federal Government to Bill States $1.3 Billion in Interest (unemployment, money, laws)

[lifelongMOgal]

on unemployment benefits. Thus adding more burden to already suffering state budgets challenged with shortfalls.

Let's hear it for all those who didn't think it would cause any pain to keep extending UE benefits on, and on, and on!

http://www.nytimes.com/2011/01/15/us...nted=2&_r=2&hp

The interest cost, which has been looming in plain sight without attracting much attention, represents only a sliver of the huge deficits most states will have to grapple with this year But it comes as states are already cutting services, laying off employees and raising taxes. And it heralds a larger reckoning that many states will have to face before long: what to do about the $41 billion they have borrowed from the federal government to help them pay benefits to millions of unemployed people, a debt that federal officials say could rise to $80 billion.

[HappyTexan]

And another UE bit looming..the Federal funding for p/t unemployment benefits is coming to an end..yes folks, it's been 2 years. Now states must fund unemployment benefits for p/t workers themselves. Not all states though, just those that took the Federal money and changed their state labor laws.