Unemployment payouts push California deeper into debt | WHAT REALLY HAPPENED

Unemployment payouts push California deeper into debt

Reporting from Sacramento — California's fund for paying unemployment insurance is broke.

With one in every eight workers out of a job, the state is borrowing billions of dollars from the federal government to pay benefits at the rate of $40 million a day.

Interest on that debt will soon start piling up, forcing the state to come up with a $362-million payment to Washington by the end of next September.

That's money that otherwise would go into the state's general fund, where it could be spent to hire new teachers, provide healthcare to children and beef up law enforcement.

California heads a list of 32 states that have been forced to borrow a total of $41 billion so far from the federal government to pay claims.

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