Friday, January 16, 2009
Indiana's Unemployment Insurance Fund is insolvent
The reporters at nwi.com report that back in November 2008, the state of Indiana's unemployment insurance fund was depleted and was forced to borrow from the feds (at an interest rate of 4.6%), and they have now borrowed $216 million---and need more and more every month.
And since (1) the the unemployment rate in Indiana is at 7.1% as of November 2008 (up from 4.5% in November 2007). (2) Politicians have decreased the unemployment tax rate on businesses and (3) The maximum unemployment insurance benefit payouts were increased from $236 a week to $390 a week; the amount of borrowing is bound to increase for at least year.