With unemployment in Georgia still over ten percent, apparently it had to happen sooner or later. Georgia's unemployment trust fund (the fund that pays out claims to those out of work) is running low, so low in fact that there is less than a month worth's of payments left. Officials say the state will be forced to seek a loan from the federal government.
It's a situation that Governor Sonny Perdue has already been made aware of, according to Purdue spokesman Burt Brentley. "Yes, Labor Commissioner Michael Thurmond has brief us and is indciating that a loan is necessary," Brently told me.
The fund reportedly has about $130 million left in it. However, monthly benefits are now running about $140 million dollars.
"Maybe the only positive thing we could come up with this scenario is that a lot of other states have had to pull the trigger and get a loan a lot sooner than us," Brently says.
So far, nearly 30 states have borrowed money from the Feds (at no interest for one year.)
We're told Thurmond will decide about seeking the federal loan by mid-December. No word yet on what may happen with contributions paid by employers, which are what comprise the fund. Some are already speculating employer contributions may have to increase, at a time when many employers say they can't afford more.
Ironically, about ten years ago the fund had enough money in it that employers in Georgia were given a "holiday" on paying their contributions. Brently says seeking the loan and deciding what to do about employer contributions is up to Thurmond. "It's a tough call, and we support the Commisioner," he told us. "The governor would prefer that employers wouldn't be asked to pay more though and we know Commissioner Thurmond feels that way, too."
Whatever happens, a spokesman from the Georgia Department of Labor tells us that those out of work should not worry, that their payments will continue.
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