Vermont owes nearly $78 million for unemployment fund advance loans
Fri Jul 27 2012
The Great recession of 2008 led to numerous states having to borrow funds from the federal government in order to meet their unemployment fund obligations. According to the US Department of Labor, Employment and Training Administration, 22 states and the US Virgin Islands are still borrowing to cover unemployment insurance. Vermont owes $77.7 million.
In December 2011 that list stood at 27, as Alabama, Michigan, Minnesota, Virginia and Kansas have since retired their obligation. As of June 7, 2012 states with outstanding balances owed the federal government a combined $28.7 billion ranging from California’s debt of $8.6 billion to Colorado’s $69.1 million. The lowest debtor was the US Virgin Islands, who owe the feds $35.4 million.
Unemployment Insurance: State Trust Fund Loans (Source: US Dept. of Labor, Employment and Training Administration). As of June 7, 2012 the most recent balances of outstanding state loans from the FUA are:
State Loan Balance Began Borrowing
Arizona $215,283,355.25 March 2010
Arkansas $310,742,335.86 March 2009
California $8,610,247,400.97 January 2009
Colorado $69,130,267.65 January 2010
Connecticut $805,281,931.40 October 2009
Delaware $76,412,258.04 March 2010
Florida $607,950,794.11 August 2009
Georgia $746,880,932.88 December 2009
Illinois $1,024,202,343.65 July 2009
Indiana $1,694,607,427.67 December 2008
Kentucky $955,183,049.95 January, 2009
Missouri $563,547,139.03 February 2009
Nevada $696,542,860.22 October 2009
New Jersey $920,435,469.76 March 2009
New York $2,693,739,509.81 January 2009
North Carolina $2,483,023,516.65 February 2009
Ohio $1,793,747,499.93 January 2009
Pennsylvania $2,447,257,697.31 March 2009
Rhode Island $209,657,180.24 March 2009
South Carolina $782,206,447.50 December 2008
Vermont $77,731,860.63 March 2010
Virgin Islands $35,437,636.13 August 2009
Wisconsin $902,838,916.28 February 2009
Total $28,722,087,830.92
http://www.ncsl.org/issues-research/labor/state-unemployment-trust-fund-loans.aspx
Compounding this debt is that the U.S. Treasury Department announced that beginning in 2012 it would increase the Federal Unemployment Tax Act (FUTA) by 0.3% each year for states that have not yet repaid their outstanding UI loan advance. This is a cost that will be charged to employers and employees making it incrementally more expensive to do business in the effected states.