A surge in unemployment caused by the coronavirus shutdown has started to take a financial toll on state jobless fundsBy DAVID A. LIEB Associated PressApril 29, 2020, 8:25 PM5 min readJEFFERSON CITY, Mo. — A surge in unemployment stemming from the coronavirus shutdown of large parts of the U.S. economy is starting to push some state jobless funds toward insolvency. At least a half-dozen states already have notified the federal government that they could need to borrow billions of dollars to pay unemployment benefits because their own trust funds are running out of money. While the shortfalls won’t prevent unemployed workers from getting government aid, the federal loans could lead to higher taxes for businesses in future years to repay the debt. U.S. Treasury data shows California, Connecticut and Illinois all expect to borrow soon from the federal government to prop up their unemployment funds. Officials in Massachusetts, New York and Texas confirmed to The Associated Press that they also have notified the federal government of their anticipated need for loans. All six of those states’ unemployment funds ranked among those at the greatest risk of insolvency because they didn’t have adequate reserves to weather a recession, according to a


Continue To Full Article