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Article Title: 33 US States Bled Dry Funding Jobless Benefits
Author: Huey Harden
Category: Politics
Word Count: 401
Keywords: employee benefits, employer-based health insurance, health care, 
health care cost, Health Insurance
Author's Email Address: [email protected]
Article Source: http://www.distributeyourarticles.com
------------------ ARTICLE START ------------------

With unemployment at an all time high of 9% majority of United States states 
have virtually drained their unemployment benefit funds dry, giving them no 
choice but to ask the Federal government for aid.

Currently, about 33 federal states and the US Virgin Islands used up their 
funds to borrow to the tune of a whopping total of $38.7 billion to provide a 
short term safety net to millions of unemployed claimants.

As a result of this, federal states are cutting off unnecessary services to 
save cost. From entertainment like fireworks to catching stray chickens, these 
cash-strapped cities are getting rid of all kinds of extraneous services.

Debt-ridden California has borrowed the most, totaling more than $8.4 billion, 
followed by Michigan and New York, which have loans worth more than $3 billion. 
Nine other states have borrowed at least $1 billion from the federal government.

"The nation's financing system for jobless benefits is under unprecedented 
stress," said Andrew Stettner, deputy director of the New York-based advocacy 
group for the unemployed. "While the recession has certainly made things worse, 
this funding crisis has been developing for years."

At the start of the recession, only 19 federal states met the recommended 
funding level, amounting to 1 year of reserves equal to the highest amount of 
unemployment insurance paid out during prior recessions.

Economic experts speculate that states build up their jobless benefit warchest 
only during strong economic times so that they can draw from these fund during 
difficult times like these.

However, in practice, to fill their meager budgets, local state governments 
gather money for unemployed workers benefits by setting a fixed tax on 
employers on a small portion of their employee wages. While wages and the 
requirements for unemployment benefit levels have been climbing, governments 
haven't been increasing the taxable base wages at the same pace.

Wrongly, they adhered to a "pay as you go" method, taxing low during productive 
times and ironically raising taxes only when dry times come.

Only 13 states were able to fund jobless benefits without borrowing from the 
Federal government. Out of that about 10 of them followed the recommended path 
to finance their warchest.

Here's how much they've borrowed from the federal government. 

State   Borrowed

California      $8.40 billion

Michigan        $3.78 billion

New York        $3.00 billion

Pennsylvania    $2.81 billion

Ohio            $2.23 billion

North Carolina  $2.14 billion

Illinois        $2.06 billion

Texas           $2.03 billion

Indiana         $1.81 billion

New Jersey      $1.55 billion

Florida         $1.50 billion

Wisconsin       $1.34 billion

South Carolina  $851 million

Kentucky        $760 million

Missouri        $687 million

Minnesota       $638 million

Connecticut     $422 million

Georgia         $337 million

Nevada          $331 million

Arkansas        $318 million

Virginia        $317 million

Massachusetts   $279 million

Alabama         $268 million

Rhode Island    $204 million

Colorado        $186 million

Idaho           $181 million

Maryland        $104 million

Kansas          $65 million

New Hampshire   $23 million

South Dakota    $23 million

Vermont         $23 million

Arizona         $22 million

Virgin Islands  $13 million

Delaware        $1 million

Huey Harden is your typical guy from Maine who's fired up and well on his way 
to developing multiple income streams online.
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