California: Jobless Fund Crisis to Hit Employers. 50% rate increase likely

Los Angeles Times ^ | December 15, 2003 | Nancy Vogel

[John Jorsett]

SACRAMENTO — The pool of money California uses to give weekly checks to the unemployed has plummeted from $6 billion in 2002 to less than half a billion dollars, forcing the state to seek a federal bailout, raise the rates employers pay into the fund and consider decreasing benefits to laid-off workers.

Starting in January, California employers — from small businesses to major corporations — can expect to pay an additional $2 billion a year into the unemployment fund, but even that won't be enough, officials say.

The state asked the federal government Wednesday for a $1.3-billion loan, marking the first time California has been forced to do so. Without the federal bailout, the fund would be more than $1 billion in the hole by the end of 2004.

[John Jorsett]

Welcome to California. Showpiece of the consequences of Democrat rule.

[Digger]

I want my check, BAAAHWAAA. I want my FREE prescriptions, BAAAHWHAAA. I want the rich to pay more, BAAAWHAAA! -----and it's OK for me to vote in this "Two-Party Cartel" that takes my jobs overseas, increases the government & makes me more dependent on them.

[Recovering_Democrat]

Look for businesses to retreat en masse from Kalifornia.

[farmfriend]

ping

[BurbankKarl]

we were just talking about this last week....i think the rates go up....dont know about 50% though....we have a reserve account since we havent laid anyone off in 10 years....of course, they will probably just confiscate that.

[farmfriend]

Luckily we don't have any employees. Too bad the cost of employing people is so high, otherwise we would.

[Looking4Truth]

I want my check, BAAAHWAAA. I want my FREE prescriptions, BAAAHWHAAA. I want the rich to pay more, BAAAWHAAA! -----and it's OK for me to vote in this "Two-Party Cartel" that takes my jobs overseas, increases the government & makes me more dependent on them.

No kidding. The gov't is screwing us no matter which 'party' is in power. And Joe and Jane Doe are too busy shopping and watching sports go give a sh*t. New World Order, here we come!

[Looking4Truth]

Luckily we don't have any employees. Too bad the cost of employing people is so high, otherwise we would.

That's all part of the plan. Make it too prohibitive for small business to grow and you either have to go to work for a 'multi-national' which has no loyalty to the U.S. or go on the gov't dole.

[farmfriend]

Yeah but that leaves out "move to another state" which is looking more and more like an option.

[BurbankKarl]

You are an employer if you pay over $100 to any individual in a quarterly period...

heehee...just received my new 2004 EDD handbook today...what timing! we pay ADP to figure all this crap out.

[waterstraat]

Bump for free trade and outsourcing to foreign workers.