The latest on California politics and government
November 2, 2012
High unemployment will persist in California for at least a couple more years, the state Department of Employment Development predicts, and the state’s $10 billion debt to the federal government will also persist unless California employers cough up more money.
The projections are contained in a new EDD report.
California began borrowing to shore up its flat-broke Unemployment Insurance Fund (UIF) nearly four years ago. The fund pays for the initial 26 weeks of unemployment insurance benefits, plus portions of extended benefits.
The debt grew to nearly $10 billion by the end of 2011. It’s expected to hit $10.2 billion by the end of this year and remain at that level through 2013 before slowly declining in 2014 as, EDD expects, unemployment drifts slowly downward.
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