California paying more than $1 Billion in Unemployment Insurance assistance each month

From the LA Times

Last month, California issued $1.1 billion in assistance checks to 429,000 claimants. Unemployed workers are eligible for payments of as much as $450 a week for up to 59 weeks.

California's unemployment insurance fund, which is funded by payroll taxes paid by employers, is expected to run short of cash within two weeks. The state is paying out $30 million to $34 million a day in benefits. During the week of Jan. 5, its balance fell from about $500 million to $270 million.

Jobless benefits will not stop, but the state must seek a federal loan to keep the system afloat. Five other states have already obtained such short-term loans, which must be paid back with interest.

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