State Government and Taxes and Legislation and Unemployment Taxes and Government & Economic Development and Government and Economic Development

Indiana expects jobless fund troubles until 2015

September 9, 2009

Indiana officials say it will take longer to resolve the state's bankrupt unemployment insurance fund's funding troubles than projected when a law designed to start fixing the system was enacted in April.

Lawmakers raised unemployment taxes on employers that are set to take effect next year and made other changes to help make the fund solvent. It has borrowed $1.1 billion so far from the federal government to stay afloat, a figure expected to climb to $1.7 billion by year's end.

The Department of Workforce Development said today that the state was earlier expected to stop borrowing from the federal government by 2012. But new figures predict it will now be 2015, and then take several more years to pay back the federal loans.

ADVERTISEMENT

Recent Articles by Associated Press

Comments powered by Disqus