California's Unemployment Fund Has $10.3 Billion Deficit

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    Nov 09, 2010 4:44 PM GMT
    Yet another example of how a Democrat-controlled legislature will bankrupt your state...

    California's Unemployment Fund Has $10.3 Billion Deficit

    California businesses already pay some of the highest unemployment taxes in the country – and the tab is likely to increase.

    The recession and the Legislature's decision years ago to raise benefits have drained the state unemployment insurance fund, which now has a estimated $10.3 billion deficit.

    The nonpartisan Legislative Analyst's Office, in a recent report titled "California's Other Budget Deficit," said the state will probably need to raise unemployment taxes on employers as well as reduce benefits to bring the fund back in balance.

    And... the doomsday / day of reckoning is just a few months away....

    The U.S. government is scheduled to bill the state about $362 million in interest next year. The Legislature would have to find the money somewhere to pay it; it wouldn't be allowed to dip into the unemployment fund, she said.
  • conservativej...

    Posts: 2465

    Nov 09, 2010 5:25 PM GMT
    It may be time to allow California to file bankruptcy. Fortunately there is now an injunction in the U.S. House of Representaives against bailouts. Lol.

    After all, all budget legislation must originate in the U.S. House, not the Senate. With lots of effort, we managed to kick Democratic _ss in the house.