The Check is in the Mail
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With the ever expanding financial problems in the US and the World, state governments are having trouble coming up with the money they have promised to the unemployed. Not least of which is New York State. Take a look at this article from CNN Money:
States face unemployment cash crisis
Here is a piece about New York State:
Wall Street woes hit New York
The implosion of Wall Street and the weakened economy around the state has led to a surge of unemployment claims in New York. The state now pays benefits to 148,000 people, up from 113,000 a year ago, said Leo Rosales, spokesman for the state Department of Labor.
As a result, New York’s trust fund has dwindled to $357 million, down from $538 million a year ago. To meet its obligations, the state has been borrowing from the feds for years, receiving nearly $1.1 billion over the past three years alone. In 2006, the state had to pay $7 million in interest of $1.5 billion it borrowed in 2005.
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The state legislature tried unsuccessfully in the spring to increase unemployment insurance taxes, while also raising the maximum weekly benefit, which now stands at $410, to $550. The bill would have increased the wage base to $11,500 over time, from its current $8,500.
Tuesday’s election left Democrats in control of both chambers of the state legislature, and the bill now has a better chance of getting passed, said Assembly member Susan John, a Democrat, chair of the labor committee.
“Members are back home in their districts and are recognizing how much people are struggling,” John said.
So it looks like we can expect increased taxes on business come January. That will most likely mean more layoffs and even more pressure on unemployment rolls in addition to the proposed increase in payments. Let’s all be sure to thank local assemblywoman Susan John for her great work.
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