Unemployment insurance fund in New Jersey runs out of cash

By: Tom MacDonald

The state of New Jersey is borrowing to cover its unemployment insurance compensation. It’s just another sign of the troubled economy.

By: Tom MacDonald
tmacdonald@whyy.org

The state of New Jersey is borrowing to cover its unemployment insurance compensation. It’s just another sign of the troubled economy.

Transcript:
Governor Jon Corzine told a group of small business owners the state’s unemployment insurance fund is out of money and is borrowing from Washington to pay about $75 million worth of claims a week, compared to $45 million a year ago.

Corzine: “Because of the billion dollars of raids of the fund over 18 years, we had $4.7 billion taken out of that and used for other purposes, maybe good purposes, and not used and stored up for unemployment we now are running next to zero at the end of March.”

New Jersey began borrowing from the federal government on March 5 to cover the unemployment checks. The loan is interest free.  The Garden State isn’t alone.  It’s one of 14 states now borrowing to pay jobless claims.

Listen:
Click on the play button below or right click on this link and choose “Save Link As” to download. [audio: reports20090324njborrow.mp3]