Jobless insurance is nearly bankrupt; Schwarzenegger urged by Davis to seek U.S. loan

San Francisco Chronicle ^ | 10-28-03

[Brian S]

Sacramento -- Gov. Gray Davis has warned Gov.-elect Arnold Schwarzenegger that California's unemployment insurance system will go bankrupt only weeks after he takes office, forcing the state to seek its first-ever bailout loan from the federal government that could top $1.17 billion.

[Brian S]

Plently of reconstruction jobs about to go online of course most will probably go to illegals.

[Oldeconomybuyer]

When Team Schwarzenegger completes their audit of the Golden State's books, God only knows what kind of corruption and deceipt they will find.

[staytrue]

State businesses are expected to see their unemployment insurance bills increase to around $329 per employee -- a $110 average increase.

If you hire off the books (mostly illegal aliens, but I've seen plenty of citizens work off the books too), then you save $329. If you want to blame the Unemployment insurance problem on illegals, you are wrong, because they do not collect it.

Further, there is no fraudlent or creative bookeeping or forgerys that can get an illegal employee to collect unemployment if they have not paid into it.

[pabianice]

Wait a minute: doesn't law require that unemployment funds be kept separately from general funds? Sounds like Davis may be going to the slammer...

[bart99]

Isn't there a time frame for people to collect unemployment payments? In Virginia I think it's 26 weeks. Now...... what happens to those poor souls whose unemployment payments run out? They go find work. How about if they do that when they first become unemployed? Seems like another 'tax' while working paid to those who aren't working. Hmmmmm. I quit my job (for various reasons) and never applied (nor did I think I could get) unemployment payments. So I made do with less and took what I could get.

Now, is the real problem in California that jobs aren't available to millions of workers...... er, ex-workers..... because of Illegal Immigrants taking jobs? And contrary to a post above, I hear that illegals pay taxes like all good americans, and even can get SSNs and Drivers licenses, and free medical care and and and...........

I think the whole workman's comp system in Calif is about on a par with all the other special interest groups. Sorry.
After no payments for a couple weeks, perhaps the unemployed will go out and get a job!!!

[bart99]

Isn't there a time frame for people to collect unemployment payments? In Virginia I think it's 26 weeks. Now...... what happens to those poor souls whose unemployment payments run out? They go find work. How about if they do that when they first become unemployed? Seems like another 'tax' while working paid to those who aren't working. Hmmmmm. I quit my job (for various reasons) and never applied (nor did I think I could get) unemployment payments. So I made do with less and took what I could get.

Now, is the real problem in California that jobs aren't available to millions of workers...... er, ex-workers..... because of Illegal Immigrants taking jobs? And contrary to a post above, I hear that illegals pay taxes like all good americans, and even can get SSNs and Drivers licenses, and free medical care and and and...........

I think the whole workman's comp system in Calif is about on a par with all the other special interest groups. Sorry.
After no payments for a couple weeks, perhaps the unemployed will go out and get a job!!!

[bart99]

Sorry for the double post...... my finger twitched..... jumped..... whatever.

[ridesthemiles]

Wait a minute: doesn't law require that unemployment funds be kept separately from general funds? Sounds like Davis may be going to the slammer...

From your lips to God's ears.....

There are a number of funds generated from specific taxes which are to be kept separate. Davis has raided almost every fund in the whole group, and transferred the money to the general fund. He even raided a victims fund that doesn't get money from taxpayers. That money comes from restitution and insurance companiesd when a judgement is obtained, and the money is meant to compensate victims of severe crimes. Gov Davis raided this fund 2 times at least and moved the money to general fund.
We have also heard that he has moved massive amounts from the gas tax fund which is to go into road building and repair. In general, Davis is a thief and a liar and not to be trusted, IMO.
I am placing alot of faith in the lady Arnold has auditing the books, Donna Arduin. She has history of auditing New York, Michigan, and Florida for waste, duplication and possible illegal movement of monies by politicians. Any Freepers out there who can tell us how effective this lady was in your states listed above? Please respond.

[Reeses]

If you hire off the books

Or if you lay off your California workers and re-hire new workers in Arizona, Neveda, Texas, you don't have to fund the bail out. Employers that choose to stay in California are left holding the bag for the employers who dump their workers onto the UI rolls, then flee. But who can blame them. Neo-Socialism sucks.

[Reeses]

what happens to those poor souls whose unemployment payments run out? They go find work.

Mexico's unemployment rate is 3 percent. That's because they don't have unemployment insurance and Mexicans cannot afford to be unemployed. If anything they can always head for the US border. Canada has lush unemployment benefits. Their unemployment runs about 10 percent. There is a big relationship between socialist benefits and the number of people sitting idle at home.

[bart99]

"Mexico's unemployment rate is 3 percent. That's because they don't have unemployment insurance and Mexicans cannot afford to be unemployed. If anything they can always head for the US border"

---

I was referring to the unemployed in Calif when their time for collecting the unemploymnet pay runs out. They do have to go get a job then, don't they? So how about if they did that the first week, rather than live off the state for half a year of so? Even if it's less than what they were making, it's something constructive. It's one thing to pay into Social security..... you don't expect an 80 year old to work. But, do we have to pay for everyone who isn't working...... and provide medical care, and education and and and.........

Sorry. I'm really NOT this heartless. Must be a bad morning ...... probably cause I have to go look for work today. *L*

[Ernest_at_the_Beach]

When Team Schwarzenegger completes their audit of the Golden State's books, God only knows what kind of corruption and deceipt they will find.

Right!

I am sure the LA Times will publish all of the revealing details. /sarcasm

[LibertyAndJusticeForAll]

"Plently of reconstruction jobs about to go online of course most will probably go to illegals."

Maybe a really desperate, bilingual, groveling, American might get hired...Nah, citizens have too many rights and then there are the messy taxes. You know, the taxes that pay for all the overcrowded schools, hospitals, emergency rooms, prisons and welfare systems that the illegals use to the tune of billions a year.

[Redbob]

"Schwarzenegger urged by Davis to seek U.S. loan"

Californians urged by U.S. taxpayers to solve own problems.

[mikemurphy111]

There is only one thing to do - Cut the benefits and make them work right from the start. One day a week - just like Wisc. made their Welfare Queens work one day a week and we all know what happened there. From 100,000 cases to 10,000 cases in ten years. When it's all said and done they won't work. Not even one day a week. So - to hell with the slackers. Calif. has more slackers than any place on earth. Let them starve!!! No more free cheese either!!! Make them work for everything - teach these lazy slackers some thing!!!

[Grampa Dave]

California's tax and spend legislature has made unemployment in California very/very nice just like their buds have done in Oregon.

Workman's comp cost for Costco in the state of California made their last quarter go into the red for the entire company.

You have nailed how to handle the problem. Limit their unemployment benefits and the time period. If they don't find a job, they are off the gravy train.

[upchuck]

A couple of things...

First:
Hey, I've got an idea... How 'bout we just stop paying people not to work?

Second:
In part because of the emergency facing the fund, the tax burden on businesses will rise 50 percent next year to cover all the claims...
Union groups that pushed for the benefits increase in 2001 believe the burden to prop up the system should fall again on business....

OK, so the unions, valliant protector of the common man, think business should pay for this. I have no problem with this. But follow the money for a moment. Where will the businesses get this extra money to pay people to not work? Think about it. Where do all businesses get their money from? And the unions want business to pay? And the unions are looking out for you and me? Sure they are!

[zeugma]

There is a big relationship between socialist benefits and the number of people sitting idle at home.

Yup. Look anywhere in europe to confirm this trend. Even when the current recession was at its worst, out unemployment rate is less than the structural unemployment rate in most of europe.

[Amerigomag]

Gov. Gray Davis has warned Gov.-elect Arnold Schwarzenegger that California's unemployment insurance system will go bankrupt only weeks after he takes office,

One of the kindest things Schwarzenegger could do after taking office is to declare an end to "unemployment insurance". Simply stop the program.

[DoctorZIn]

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