For all the hype about unemployment, information about the current status of UA & States is an important aspect. Since UA is a Joint Federal & State program, any extensions of unemployment checks comes from the Federal side. States do not authorize the extension of payments. The money for the fund does come the states. Tho, the Federal government can 'loan' money to states by borrowing money to place in the FUA account fund, in an emergency which 2008 rapidly went. I would guess that nothing like it had been seen, across the US, since the Great Depression. The speed with which this one hit was compounded by business people making rapid adjustments. The US had a Grand Mal epiliptic fit in essence.
Business's, now, that have to factor in the increase in the tax rates for the current outstanding FUA tax rates...in those states that still have outstanding balances, will no doubt have to lower something. I would think that if the employees are expecting a raise...they might not get much of one. There are always consequences.
It wasn't enough for the Northeast states that they were still struggling but they got slammed with Hurricane Sandy to add to their woes & unemployment. I think that the rates & interest payment should be frozen if not outright deferred for several more years. This would give them a chance to reorganize a bit better. I haven't found any information that this has been requested or approved or even considered.
The oldest outstanding loan is Indiana...2008. Arizona & Vermont held out until March 2010.
Originally, 30 states had to borrow money under the auspices of the American Recovery Act without which laid off workers wouldn't have had any money to live on. It was a very difficult time.
As of January 18, 2011, 30 states have outstanding balances on loans from the FUA. Moreover, these loans are now accruing interest as of January 1, 2011, and states must make interest payments by September 30, 2011. Employers in states that fail to make interest payments or pay off the outstanding balance of their loans within the designated timeframewill face an effective federal tax increase.
There were concerns about some of the provisions in the ARA (HR1) . Here were some key questions and answers in explaining the Unemployment benefits. It is more complicated than people think at first look. :) States or state legislators may want to proclaim their 'independance' from the Federal government but in actuality, states are dependant, in some cases more like... a co-respondant situation, with the Federal government.
In 2008, the FUA fund had a grimmer outlook. 48 states, Puerto Rico & District of Columbia had negative balances...in 20 days from Dec 11-solvency to Dec 31-insolvency.
Louisiana was the only holdout with somewhat sufficient funds. Louisiana also has the best UA provisions plan. Something other states should consider for the future... Indiana was barely hanging on and did go into borrowing status.
The economic stimulus bill enacted on February 17, 2009 has several provisions related to unemployment insurance (UI). Several governors have objected to some provisions. In this document, Senior Fellow Wayne Vroman, an economist and researcher on UI, answers key questions about the program changes.
Unemployment Insurance: State Trust Fund Loans
As of January 3, 2013, the most recent balances of outstanding state loans from the FUA are:
State
Loan Balance
Arizona
$330,339,516.70
Arkansas
$234,438,497.54
California
$10,661,879,757.64
Connecticut
$639,924,451.02
Delaware
$77,226,258.04
Florida
$681,416,097.02
Georgia
$585,846,764.60
Indiana
$1,804,352,864.88
Kentucky
$838,337,328.50
Missouri
$579,497,388.33
Nevada
$710,689,358.22
New Jersey
$1,101,484,546.98
New York
$3,701,963,886.15
North Carolina
$2,598,007,665.01
Ohio
$1,817,912,085.65
Pennsylvania
$101,135,910.84
Rhode Island
$213,356,080.09
South Carolina
$675,597,745.87
Vermont
$57,731,860.63
Virgin Islands
$57,743,040.87
Virginia
$39,188,000.00
Wisconsin
$922,953,670.51
Total
$28,431,022,775.09
Here is the previous balance October, 2011
Based on the statutory Title XII loan repayment requirements, the states listed below with rates listed in the “Actual” column did not repay their outstanding Title XII loan balance by November 10, 2012. Employers in each of these states will lose a portion of their FUTA tax credit on the 2012 Federal 940 which will result in a higher effective FUTA tax rate as indicated for all employment in that state. The rates listed in the “Potential” column for 2013 and 2014 are projected under the assumption that the Title XII loans on those states will not be repaid by November 10th of the column year.
........
State
Effective FUTA Tax Rate
Actual
Potential
2012
2013
2014
Arizona
0.90%
1.20%
1.50%
Arkansas
1.20%
1.50%
1.80%
California
1.20%
1.50%
1.80%
Connecticut
1.20%
1.50%
1.80%
Delaware
0.90%
1.20%
1.50%
Florida
1.20%
1.50%
1.80%
Georgia
1.20%
1.50%
1.80%
Indiana
1.50%
1.80%
2.10%
Kentucky
1.20%
1.50%
1.80%
Missouri
1.20%
1.50%
1.80%
Nevada
1.20%
1.50%
1.80%
New Jersey
1.20%
1.50%
1.80%
New York
1.20%
1.50%
1.80%
North Carolina
1.20%
1.50%
1.80%
Ohio
1.20%
1.50%
1.80%
Rhode Island
1.20%
1.50%
1.80%
South Carolina*
1.80%
2.10%
Vermont
0.90%
1.20%
1.50%
Virgin Islands**
2.10%
1.50%
1.80%
Wisconsin
1.20%
1.50%
1.80%If the payments are made by November 10thof the applicable years and the USDOL approves, the FUTA effective rate will be reduced to 0.6% again.
