Unemployment fund facing years of borrowing unless fixes made

Fresno Bee ^ | Updated January 28, 2004 (4:31 pm) | STEVE LAWRENCE, Associated Press

[Amerigomag]

SACRAMENTO (AP) - Unless some corrections are made, California's unemployment insurance fund faces years of deficits and borrowing, a state Assembly committee was told Wednesday.

"It's an ugly scenario," said Deborah Bronow, an Employment Development Department deputy director.

Bronow said the fund will be forced to go to the federal government for a first-time loan of more than $1 billion this year and will have to borrow increasing amounts in future years to remain solvent, with the total topping $4 billion in 2008.

[Amerigomag]

Translation:

The fund is bankrupt and we need to raise taxes.

In the meantime, US taxpayers are going to have to bail us out.

[NormsRevenge]

... California had the lowest unemployment benefits in the country before the "long overdue" 2001 increases. Top rates now total $410 a week and are scheduled to rise to $450 in 2005.

This coupled with a report that you must have a minimum $124,000 a year family income to afford a median house purchase in the Bay Area.

Utopia is in big trouble.

[Henchman]

What unemployment? We need the undocumented, formerly illegal "guest WORKERS". If we have unemployment, we would have to, gasp, deport them.

[Auntie Mame]

I manage payroll at work and the unemployment tax was just raised. Funny they didn't mention that in this fact-based article. It seems pretty relevant to the subject matter.

[calcowgirl]

Utopia is in big trouble

LOL!