More debt in the Doyle economy
The MacIver News Service reports today more bad news about our state government’s debt obligations for unemployment compensation:
The State of Wisconsin continues to be one of the largest debtors to the federal government when it comes to covering losses in its Unemployment Reserve.
Earlier, MacIver News reported the state had amassed a $1.4 billion dollar debt in their Reserves.
According to a new analysis by the Council of State Governments, that total puts Wisconsin as the nation’s fourth most indebted state, per capita.
By owing $251.96 per person to the federal government just to cover monies borrowed for the Unemployment Reserve, Wisconsin only trails Michigan ($382.57), Indiana ($272) and North Carolina ($253.31) for per capita indebtedness.
If the amounts in Wisconsin’s Unemployment Reserve account in the U.S. Treasury are not sufficient to cover anticipated unemployment payments, the state can borrow funds from the federal government. Despite receiving $134 million in Stimulus funds, Wisconsin’s Unemployment Reserve Fund ended 2009 with a deficit of nearly one billion dollars. That figure continues to grow.