Calif borrows $40M a day to pay unemployment

[GlennO]

Calif borrows $40M a day to pay unemployment
Sunday, November 7, 2010

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(11-07) 10:05 PST Los Angeles, CA (AP) --

With one in every eight workers unemployed and empty state coffers, California is borrowing billions of dollars from the federal government to pay unemployment insurance.

The Los Angeles Times reports that the state owes $8.6 billion already, and will have to come up with a $362-million payment to Washington by the end of next September.

The continued borrowing means federal unemployment insurance taxes are going to increase, upping the annual payroll costs $21 a year per worker.

California tops the list of 32 states that have borrowed a total of $41 billion to pay claims.

The state took out its first loan from the federal government early last year, to deal with rising payment of benefits and number of claims.
Calif borrows $40M a day to pay unemployment

[GlennO]

Watch for BHO to make a pitch during the lame duck session, for expanding unemployment compensation eligibility beyond the 99 weeks term granted earlier this year. One can only hope those ducks are too lame to waddle!

Regardless what you may think of Kalifornia, it is still the eighth largest economy in the world. It is not unreasonable to foresee the collapse of LaLa Land being the final straw that brings down the nation's financial "house of cards".

We simply cannot sustain a system where 47% of the system are not paying and 53% are paying all the bills.

[SonSeeker]

I wonder how many of the 47% are legal U.S. citizens.
Just askin'

[GlennO]

Good question! I'll have to snoop that out this evening

[GlennO]

Opps, the 47% is a federal statistic. I'll see if I can find the stat for LaLa land.

[Sean Osborne]

Calif borrows $40M a day to pay unemployment.

It doesn't matter if California's residents are legal or illegal .. Californian's should be paying the bill for all of this insanely crazy borrowing against future revenues. A guaranteed recipe for economic disaster.

It's a broke economy that the people of the sovereign state (some say republic) of California should fix. Git'r'done.

btw... I'm a native born San Diegan.

[Robert]

Okay,

i know I may be setting myself up here for a bajillion pages of posts explaining why, but exactly HOW did California get into this mess? Was it because of the "Governator", or was it even before Arnie's term in office?

Every time I try to read about this financial fiasco, my head spins and I need Dramamine just-to sit in my computer chair!!

[SonSeeker]

Opps, the 47% is a federal statistic. I'll see if I can find the stat for LaLa land.

Hmmm, is the $40M a federal statistic also??

[SonSeeker]

It doesn't matter if California's residents are legal or illegal

If the recipient of unemployment insurance is an illegal alien using a fake Social Security number, and was sending most of his income out of this country (which is what most of them do), it stands to reason most of the unemployment insurance money will be going out of this country also, and not contributing to the local economy.

Californian's should be paying the bill for all of this insanely crazy borrowing against future revenues. A guaranteed recipe for economic disaster.

Sadly, I'm afraid they are; in the form of even higher unemployment.

It's a broke economy that the people of the sovereign state (some say republic) of California should fix. Git'r'done.

It's most definitely a "broke economy", Sean, and of course, California should fix its own problem. But, in many ways, California has been the trend-setter for the entire country. If their economy goes down in a ball of flames, the rest of us won't be far behind. No government can sustain itself by constantly handing out money (or in some cases, IOU's!) without any revenue coming in.

I lived in Southern and Central California for eight years, and my brother still lives in SoCal. There are many areas there that are now totally unrecognizable as even being in the USA; and my brother just came back from a trip to NYC which he found was much cleaner and safer than most of LA! I moved out of Cali in 1984, and have never regretted my decision. And New Jersey is about as far away from San Diego as one can get and still be in the USA!

[GlennO]

SonSeeker said:

Hmmm, is the $40M a federal statistic also??

California tops the list of 32 states that have borrowed a total of $41 billion to pay claims.

$40 million per DAY. I wonder if the Feds are even bothering to track the loans.

We need a big earthquake to jump start the CA economy.

[SonSeeker]

SonSeeker said:


We need a big earthquake to jump start the CA economy.

Oh yeah, that'll do it!!