Unemployment: California forced to tap feds for jobless funds | SierraSun.com

Unemployment: California forced to tap feds for jobless funds

The Associated Press

SACRAMENTO ” California has started borrowing from a federal fund so it can continue paying unemployment insurance benefits to the state’s growing number of jobless residents.

The Employment Development Department estimates that it needs $2.4 billion from the federal fund to keep its unemployment program solvent through the end of the year.

That would require the state to pay $20 million in interest.

California’s unemployment rate climbed to 9.3 percent in December, the highest it’s been since January 1994. The state budget deficit is projected to hit $42 billion in the next 17 months.

California has had to borrow from the federal unemployment fund only one other time, in 2004.

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