State runs out of benefits
Indiana unemployment hit 9.2 percent in January. That’s more than a full percentage point higher than the national rate. It’s also just shy of the dreaded double-digit mark, which has already hit in Michigan, Rhode Island, California and South Carolina.
The state’s unemployment benefits fund has already run dry.
No solution yet
Employers only pay a small percentage of unemployment insurance, and the rest is up to the government. Indiana lawmakers are trying to find a solution to running out of unemployment money. The provision in Obama’s economic stimulus package that extends unemployment benefits will certainly be helpful to people who can’t find work, but it will make Indiana’s situation worse.
A big leap
The January unemployment rate in Indiana is nearly double what it was last year at the same time. In January 2008, Indiana’s unemployment rate was 4.8 percent. The “normal” unemployment rate is between 4 and 5 percent, usually. As more people become unemployed, fewer are applying for payday loans as well.
Not alone
It probably won’t surprise you to know that Indiana isn’t the only state facing an empty unemployment bank account. Some states have already had to put new policies and taxes in place to combat this phenomenon.
Everybody’s problem
In West Virginia, the Chamber of Commerce has proposed tacking on an extra surcharge on payments to the unemployment fund. Luckily West Virginia is looking ahead. Its unemployment fund will run out in 18 months if no change is made. So kudos to West Virginia for thinking ahead.
Tight times in Tennessee
Tennessee’s unemployment fund also will run dry if it doesn’t make a change. Its unemployment fund appears to be scheduled to run out in about a year. Tennessee is examining raising the taxable wage base and increase tax rates for unemployment insurance.
Oh, boy. This is not good. I can’t find out if it was before or after Indiana got any of the stimulus funds, but let’s hope the stimulus funds are on their way.
My employer pays the full amount of my claim each year. I can not receive any more than is paid into my account. How can the state run out with a 90% overpayment state wide?
Thanks be to Allah, or God, I mean, that BO is in office! Our phony money will help bail out the states so that our children & their children and their children, and their…can bail us out.
Too many illigals are on welfare and all the self-employeed dont pay in, with Obama redirecting funds into the stimulus and the war and with the self-employeed loosing thier jobs, not to mention this is the Government and they think they can manage universal health care. This has all overloaded the sytem.