Unemployment Debt Continues to Weigh, 6 Years Post-Recession

Of the 35 states that borrowed money when the recession depleted jobless benefit accounts, only three have yet to retire their debt: California, Ohio, and Connecticut. This is because businesses must repay through higher levies. California debt isn’t projected to be paid off until sometime in 2018.

California owes $5.9 billion, Connecticut $101 million, and Ohio has an outstanding balance of $775 million. California is at a stalemate as businesses are wary of higher taxes, and employee groups do not want to accept benefit cuts.

Connecticut is expected to pay off its debt by the end of next year.

Ohio has introduced legislature to alleviate current debt and prevent such a re-occurrence in the event of another recession. Supporters have said that, with unemployment so low, the timing is right while the economy is improving.

Opposition to the legislature deems it an unjust measure that “puts the burden of reform on the backs of the unemployed while employers will pay less overall.”

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