Colorado is just one of forty states borrowing money from the federal government to pay unemployment benefits the question really is where is the federal government getting the money? Colorado is just one of FOURTY states that do not have the money to continue to pay unemployment benefits’, the issue becomes what happens next, we are printing money that has less and less value every day, real inflation (what we really pay for goods and services as opposed to the fictional numbers the Fed and the what house puts out) cost us more and more every day.
There is no economic recovery remotely on the horizon barring a miracle we are headed for massive unemployment far exceeding the 24 million we currently have. The economic disaster on the horizon will be compounded by the 8,000 boomers a year retiring the housing market the artificially inflated values of the stock market. See the full story
Colorado unemployment fund out of money, but still paying
The fund officially ran out of state money Jan. 20, but the state has borrowed $122 million from the federal government as of Wednesday to keep benefits flowing to unemployment insurance recipients, according to Wayne Peel, chief financial officer of the Colorado Department of Labor and Employment. The state borrows the money from the federal government on a daily basis and does not exceed what the state needs to pay unemployment benefits.
Colorado is one of 30 states and U.S. territories receiving federal help to pay unemployment benefits. Peel said he expects three more states — Arizona, Delaware and New Hampshire — to join the list by the end of the month. The federal government expects to loan money to as many as 40 states by the end of the recession, Peel said.
The Colorado fund’s insolvency stemmed from high demand for benefits — the state processed 19,141 first-time, unemployment-insurance claims in June 2009, compared to 7,790 in June 2007 — and a system for filling the trust fund that hasn’t changed with inflation in more than 20 years. The fund’s balance shrank from $676.5 million in November 2008 to $161.7 million in November 2009, according to materials the Department of Labor and Employment presented to the Legislature’s Joint Budget Committee in December. The state paid an average of $88 million a month in the first 10 months of 2009.