When North Carolina y Gov. Pat McCrory signed the measure cutting unemployment benefits, he noted that the state owed the federal government $2.5 billion for a loan it took out to keep its program solvent. The cuts took effect last week.

“I will not outsource these tough decisions,” McCrory said. “This bipartisan solution will protect our small businesses from continued over-taxation (and) ensure our citizens’ unemployment safety net is secure and financially sound for future generations.”

The reductions have prompted protests, but they have helped states pay down their debts. In 2011, Florida tied its time limit to its unemployment rate, among other changes. It paid off its $3.5 billion debt in May. Colorado Democrats raised taxes on employers to shore up their state’s fund, once saddled with $500 million in debt. GOP-controlled Michigan raised taxes on employers and lowered its time limit to 20 weeks.

“Previous administrations had not kept up with payments on our unemployment insurance debt,” said Ari Adler, a spokesperson for Michigan House Speaker Jase Bolger, a Republican. Since making its changes in early 2012, Michigan has paid off $300 million of its debt, but still owes $2.6 billion.

Overall, states still owe Washington more than $21 billion for loans they took out to replenish their funds, according to the most recent federal data. California owes the most, at $8.6 billion. Indiana, New York, Ohio and North Carolina all owe more than $1 billion. Others have sold bonds to pay off debt, and that borrowing isn’t represented in the federal data.

Many are skeptical that states’ efforts will be enough. Much depends on the recovery and how much time passes before the next downturn strains resources again.

For now, emergency federal benefits have mitigated the state cuts. During the depths of the recession, Congress approved federally funded aid for unemployed people who exhausted their state benefits.

But as a state’s jobless rate goes down, the federal government gives its unemployed residents fewer weeks of benefits. In states with the lowest rates, the federal government provides just 14 weeks of additional coverage.

In Georgia, a person applying today would get 18 weeks of state benefits plus 25 weeks of federal benefits. In Michigan, the federal government will cover an additional 28 weeks. The current maximum, for states with an unemployment rate of at least 9 percent, is 47 weeks of federal help.

Also, weekly payments under the federal program have been pared by about 15 percent due to sequestration The federal program will expire at the end of the year unless Congress renews it, and many say that will be a challenge.

North Carolina last week opted out of the federal program entirely — the first state to do so. The move ended benefits for more than 80,000, by some estimates, and also made the state Exhibit A for those who oppose cuts in unemployment benefits.

Pages: 1 · 2

More Articles

• Julia Sneden Wrote: Going Forth On the Fourth After Strict Blackout Conditions and Requisitioned Gunpowder Had Been the Law
• Voting Rights: Assistant Attorney General Kristen Clarke Testifies Before the Senate Judiciary Committee Hearing; “One of the most monumental laws in the entire history of American freedom”
• Consumer Financial Protection Bureau (CFPB): Lenders Cannot Discriminate Based on Sexual Orientation or Gender Identity
• Kaiser Family Foundation (KFF), February 8th: This Early Stage of the COVID-19 Vaccine Roll-Out, Most Older Adults Have Not Yet Been Vaccinated As Supply Remains Limited
• How are States Prioritizing Who Will Get the COVID-19 Vaccine First? CDC’s Advisory Committee on Immunization Practices (ACIP) Released an Interim Recommendation For the Highest Priority Group
• Scientific American Endorses Joe Biden We’ve never backed a presidential candidate in our 175-year history — until now
• Stateline: Many Faithful Say It’s Time to Gather. Some Governors Disagree
• Automatic Stabilizers: What Are They and Do They Help Workers Who Stay Home Due to the Corona Virus?
• Weekly National Summary of Week 50: Outpatient Illness Surveillance, Geographic Spread, Mortality Surveillance
• 4.7 Million Uninsured People Nationally Could Get a No-Premium Bronze Plan in the ACA Marketplace, Though Deductibles Would be High