NEW YORK, Dec. 18, 2008
States Feel Unemployment Squeeze
CBS Evening News: Thirty States' Coffers For Jobless On Verge Of Drying Up
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Play CBS Video Video States' Unemployment Funds Low As a recession in the U.S. continues to hinder all facets of the economy, many states now say that their unemployment budgets have reached drastically low levels. Kelly Wallace reports from New York.
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(CBS/AP)
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In-Depth Q&A: Unemployment Benefits All about jobless benefits and how they're funded.
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Interactive On The Job Explore America's labor economy, track recent major layoffs and meet key economic players.
"They're essential, I need them to, you know, buy food, pay my rent, that's the money that's keeping me going right now," she said.
But her state is one of the 30 on the brink of running out of money to cover unemployment benefits. Indiana and Michigan's funds have already dried up and now they're getting loans from the federal government.
Michigan alone has borrowed more than $500 million.
"States were ill prepared for a recession of any kind and what we got is a recession of magna-size," said Andrew Stettner, deputy director of the National Employment Law Project.
This is not the first time states have had to borrow from the federal government. It's happened before during previous recessions but experts say this one is different.
"We have more states being forced to borrowing earlier in the job slump," Stettner said.
And the financial outlook for the states is only expected to get worse.
It's recommended that states keep at least one year of recession-level unemployment benefits in a trust fund - but many did not.
And since borrowing from the federal government is a costly, short-term solution, if the recession lasts for years, the states' options are limited and tough - either raise taxes on employers who fund the system or pare down benefits.
"The unemployment and the deepness of the recession is going to have just gut-wrenching effects on state and local governments throughout the country," said Stephen Levy of the Center for Continuing Study of the California Economy.
That means gut-wrenching decisions for states - knowing there will be more laid-off workers like Jennifer Sloan who can't get by without the help.Read more about this story at Couric & Co. blog.
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- What on Earth did these people waste their incentive checks on? How about being responsible for your own debts and getting a job. There are plenty of jobs out there if you really want to work. This is also a good time to get a higher education so you can become a better worker instead of a user.
- Reply to this comment
- . unless i become absolutely not-greedy, i can make a liveing off just my garbage . ''''
Posted by morphndol8 at 12:41 AM : Dec 19, 2008
You mean like the garbage you keep posting under various IDs ? - Reply to this comment
- Tell Bush and Congress they will sent you some og the TAX PAYERS money to wast. Better call the UAW, Bysh just gave them 17.4 Billion
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- This will be the end of the conservative party of lies. I shouldn''t say conservative because the Republicans left conserative years ago with Newt and the rest of the neocons.
Now they are Reactionary ultra right wing so far to the right the only way they can make a left is to circle around the block. - Reply to this comment
- Stop paying the UAW. They make to much from the Auyomakers.
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