Hawaii Joins 31 States in Borrowing...from the Federal Government to Cover Unemployment Benefits

Hawaii Reporter ^ | December 1st, 2010 | Malia Zimmerman

[george76]

Hawaii has applied to be the 32nd state to borrow from the U.S. Department of Labor’s Employment and Training Administration to pay state unemployment benefits.

That is the beginning of what will likely be an 18-month borrowing streak, says state Department of Labor and Industrial Relations Interim Director Pearl Imada Iboshi, who notes that the state could need as much as $30 million a month from the federal government to cover Hawaii’s fund.

States have borrowed an estimated $40 billion from the federal government for unemployment benefits...

Businesses – not employees – pay the state unemployment compensation tax on each worker. Hawaii, one of the nation’s most union friendly states, is considered to have generous unemployment benefits up to nearly $560 a week.

[george76]

full title...

Hawaii Joins 31 States in Borrowing Millions from the Federal Government to Cover Unemployment Benefits

[justlurking]

Anyone know where I can find a list of the other 31 states?

[bgill]

Hawaii, with the help of their newly elected governor, Abercrombie is raking in the big bucks. You remember Abercrombie, the only person on the face of the Earth who claims to have ever seen Obama Sr. and Ann together. You can bet Hawaii will be the beneficiary of the largest boatload of government freebies and perks and under the table deals of all the states. Hey, it costs more than $10 to keep a BC under wraps.

[biff]

So let me get this straight - Hawaii borrows the money from the Dept. of Labor who borrows it from the U.S. Dept. of the Treasury who borrows it from the Federal Reserve who prints it up on fresh new paper?

Have I got it right?

[wac3rd]

You forgot those pesky Treasuries the Chinese buy that push more equity away from the country.

[george76]

Unemployment Insurance: State Trust Fund Loans.

http://www.ncsl.org/?tabid=13294

[doodad]

I was shocked to learn this was common practice and being done here in GA as well. My question is where did all the money collected go over the years?

[dragnet2]

Does anyone have a list of these states?

[george76]

What the Federal Reserve is up to, and how we got here.

http://www.youtube.com/watch?v=PTUY16CkS-k

Quantitative Easing Explained

[lonestar]

Why should we have to pay benefits to people in Hawaii? Oh, I remember! Democrats create messes and expect others to clean it up because they don't believe in personal responsibility.

I would be happy if the fed gov't funded their mandates!

[george76]

Unemployment Insurance: State Trust Fund Loans.

http://www.ncsl.org/?tabid=13294

and growing

[justlurking]

Thanks! Here's the list:

State	Loan Balance as of Dec. 13, 2010	Began Borrowing
Alabama	$283,001,164.19	September, 2009
Arizona	$212,184,077.48	March, 2010
Arkansas	$330,853,383.31	March, 2009
California	$9,112,847,509.67	January, 2009
Colorado	$381,881,712.41	January, 2010
Connecticut	$498,452,705.05	October, 2009
Delaware	$24,840,505.48	March, 2010
Florida	$1,835,100,000.00	August, 2009
Georgia	$482,000,000.00	December, 2009
Idaho	$202,401,700.22	June, 2009
Illinois	$2,239,582,343.13	July, 2009
Indiana	$1,911,332,372.08	December, 2008
Kansas	$88,159,421.40	March, 2010
Kentucky	$795,100,000.00	January, 2009
Massachusetts	$387,313,005.04	February, 2010
Michigan	$3,810,391,759.10	September, 2006
Minnesota	$475,988,154.16	July, 2009
Missouri	$722,116,933.16	February, 2009
Nevada	$590,548,230.71	October, 2009
New Jersey	$1,749,563,533.38	March, 2009
New York	$3,176,873,427.71	January, 2009
North Carolina	$2,430,963,662.58	February, 2009
Ohio	$2,314,186,799.00	January, 2009
Pennsylvania	$3,008,614,960.83	March, 2009
Rhode Island	$225,472,937.00	March, 2009
South Carolina	$886,662,351.97	December, 2008
Texas	$1,699,051,361.86	July, 2009
Vermont	$32,657,064.94	March, 2010
Virgin Islands	$17,134,491.24	August, 2009
Virginia	$346,876,000.00	October, 2009
Wisconsin	$1,424,768,541.29	February, 2009
Total	$41,696,920,108.39

[Logical me]

Damn it! There is no such thing as borrowing from the Federal Government. It’s a hand out from taxpayers. You just gave Hawaii a handout and it is permanent.

[jwparkerjr]

re: where did all the money collected go over the years?

Good question! My guess is it went the same place the trillion or so in Social Taxes that were collected and what wasn’t used to pay benefits at that time went into the trust fund of the general appropriations to let government look like it was paying its own way.

If SS had not taken that money and used it for general expenses all these years the fund would not be in trouble.

It frustrates me no end when I read that SS for the first time is paying out more than it takes in. Of course it is. The idea is to put it away when you getting more than you spend so that you spend when you’re not getting as much as you spend.

Suffice it to say anyone other than Congress and the feds would be in jail if they handled a retirement system they way SS has been treated.

They are like a family living the high life by selling what was left them by their grandparents. Looks good, feels good and gets the job done. For a bit. But then reality hits home and it’s no longer fun and games. And that’s about where we are right now. We’ve eaten the seed corn and planting time is going to be bitch. But nearly as much so as when harvest time rolls around.

Sigh.

[justlurking]

By starting date (ascending):

State	Loan Balance (as of 2010-12-13)	Began Borrowing
Michigan	$3,810,391,759.10	September, 2006
South Carolina	$886,662,351.97	December, 2008
Kentucky	$795,100,000.00	January, 2009
New York	$3,176,873,427.71	January, 2009
Ohio	$2,314,186,799.00	January, 2009
Missouri	$722,116,933.16	February, 2009
North Carolina	$2,430,963,662.58	February, 2009
Wisconsin	$1,424,768,541.29	February, 2009
New Jersey	$1,749,563,533.38	March, 2009
Pennsylvania	$3,008,614,960.83	March, 2009
Rhode Island	$225,472,937.00	March, 2009
Minnesota	$475,988,154.16	July, 2009
Texas	$1,699,051,361.86	July, 2009
Virgin Islands	$17,134,491.24	August, 2009
Nevada	$590,548,230.71	October, 2009
Virginia	$346,876,000.00	October, 2009
Massachusetts	$387,313,005.04	February, 2010
Kansas	$88,159,421.40	March, 2010
Vermont	$32,657,064.94	March, 2010
Florida	$1,835,100,000.00	August, 2009
Indiana	$1,911,332,372.08	December, 2008
Georgia	$482,000,000.00	December, 2009
California	$9,112,847,509.67	January, 2009
Colorado	$381,881,712.41	January, 2010
Illinois	$2,239,582,343.13	July, 2009
Idaho	$202,401,700.22	June, 2009
Arkansas	$330,853,383.31	March, 2009
Arizona	$212,184,077.48	March, 2010
Delaware	$24,840,505.48	March, 2010
Connecticut	$498,452,705.05	October, 2009
Alabama	$283,001,164.19	September, 2009

[justlurking]

By amount (descending):

State	Loan Balance (as of 2010-12-13)	Began Borrowing
California	$9,112,847,509.67	January, 2009
Michigan	$3,810,391,759.10	September, 2006
New York	$3,176,873,427.71	January, 2009
Pennsylvania	$3,008,614,960.83	March, 2009
North Carolina	$2,430,963,662.58	February, 2009
Ohio	$2,314,186,799.00	January, 2009
Illinois	$2,239,582,343.13	July, 2009
Indiana	$1,911,332,372.08	December, 2008
Florida	$1,835,100,000.00	August, 2009
New Jersey	$1,749,563,533.38	March, 2009
Texas	$1,699,051,361.86	July, 2009
Wisconsin	$1,424,768,541.29	February, 2009
South Carolina	$886,662,351.97	December, 2008
Kentucky	$795,100,000.00	January, 2009
Missouri	$722,116,933.16	February, 2009
Nevada	$590,548,230.71	October, 2009
Connecticut	$498,452,705.05	October, 2009
Georgia	$482,000,000.00	December, 2009
Minnesota	$475,988,154.16	July, 2009
Massachusetts	$387,313,005.04	February, 2010
Colorado	$381,881,712.41	January, 2010
Virginia	$346,876,000.00	October, 2009
Arkansas	$330,853,383.31	March, 2009
Alabama	$283,001,164.19	September, 2009
Rhode Island	$225,472,937.00	March, 2009
Arizona	$212,184,077.48	March, 2010
Idaho	$202,401,700.22	June, 2009
Kansas	$88,159,421.40	March, 2010
Vermont	$32,657,064.94	March, 2010
Delaware	$24,840,505.48	March, 2010
Virgin Islands	$17,134,491.24	August, 2009

[justlurking]

Let's try the "by date" again. For some reason, the first one didn't sort correctly:

State	Loan Balance (as of 2010-12-13)	Began Borrowing
Michigan	$3,810,391,759.10	September, 2006
Indiana	$1,911,332,372.08	December, 2008
South Carolina	$886,662,351.97	December, 2008
California	$9,112,847,509.67	January, 2009
New York	$3,176,873,427.71	January, 2009
Ohio	$2,314,186,799.00	January, 2009
Kentucky	$795,100,000.00	January, 2009
North Carolina	$2,430,963,662.58	February, 2009
Wisconsin	$1,424,768,541.29	February, 2009
Missouri	$722,116,933.16	February, 2009
Arkansas	$330,853,383.31	March, 2009
Pennsylvania	$3,008,614,960.83	March, 2009
New Jersey	$1,749,563,533.38	March, 2009
Rhode Island	$225,472,937.00	March, 2009
Idaho	$202,401,700.22	June, 2009
Illinois	$2,239,582,343.13	July, 2009
Texas	$1,699,051,361.86	July, 2009
Minnesota	$475,988,154.16	July, 2009
Florida	$1,835,100,000.00	August, 2009
Virgin Islands	$17,134,491.24	August, 2009
Alabama	$283,001,164.19	September, 2009
Connecticut	$498,452,705.05	October, 2009
Nevada	$590,548,230.71	October, 2009
Virginia	$346,876,000.00	October, 2009
Georgia	$482,000,000.00	December, 2009
Colorado	$381,881,712.41	January, 2010
Massachusetts	$387,313,005.04	February, 2010
Arizona	$212,184,077.48	March, 2010
Delaware	$24,840,505.48	March, 2010
Kansas	$88,159,421.40	March, 2010
Vermont	$32,657,064.94	March, 2010

[george76]

Thanks.

Just the beginning