Wednesday, June 3, 2009

California's Unemployment Insurance Fund could be $18 Billion underfunded

The SF Gate reports that the state of California could see it's unemployment insurance system run an $18 billion deficit by 2010.

The state currently taxes employers ~$434/employee per year to fund the unemployment insurance trust fund---this calculation hasn't changed since the mid 1980's even though the average weekly payout to the jobless has increased to a maximum $450 per week of unemployment benefit.

The state which has already run into issues with balancing its books will defiinitely see legislators debate this issue---Either raise taxes on employers, cut benefits to the jobless, or both.

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