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N.C. owes feds $1.5B in unemployment loans

Posted December 28, 2009
Updated December 29, 2009

Money
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— North Carolina ranks sixth among 25 states that have outstanding loans from the federal government to pay unemployment benefits, according to U.S. Department of Labor statistics.

In 2009, the state borrowed more than $1.5 billion to pay initial unemployment benefits for a maximum of 26 weeks to individuals who are eligible.

California ranked No. 1, owing more than $5.7 billion; Michigan, New York, Pennsylvania and Ohio follow respectively, owing more than $8.5 million combined. South Dakota ranks at the bottom of the list, owing more than $6 million. (See what other states owe.)

In all, the U.S. government has to collect more than $25 billion in outstanding loans.

Some states have considered raising payroll taxes to cover the amounts they owe. North Carolina's Employment Security Commission, however, says there's no plan in place on how the state will pay back the loan.

This isn't the first time North Carolina has borrowed money to pay for unemployment benefits. It's the amount that's unprecedented. During the 2001-2002 recession, the Employment Security Commission borrowed about $240 million.

Interest on the loan begins accruing at the end of 2010.

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  • mrbigt032j Dec 29, 2009

    If you want a job you can get one farmers need farm hands all the time don't beleve it just ask all the mexicans that come to this country might not be the job you want but if you and your family was hungray and no unemployment .any thing is better than sitting at home and depending on someone fedding you

  • Boot-the-DC-Tyrant Dec 29, 2009

    Just as long as I get my weekly unemployment I am fine, I have a feeling that there wont be any new jobs with this administration in DC. So I am setlling in for a long winters nap!

  • OzzzMan Dec 29, 2009

    I feel for people that need. My wife works for the ESC and I hear about it everyday. 60 minutes did a story a few weeks ago about what cause the US economic downfall and it wasn't Bush.

    http://www.wsws.org/articles/1999/nov1999/bank-n01.shtml

  • grimreaper Dec 29, 2009

    Bottom line is they should not have extended the benefits beyond what they had money for or could reasonably pay back.

    People are just riding unemployment and not taking viable work. I know people that are just taking the unemployment but if it had not been extended they would be working right now. Sure, there are folks out there that are legitimately unemployable, but there are a lot simply not putting the effort into finding meaningful work either. My nephew has secured himself two good jobs during this recession. He took a temp position and after 2 weeks the employer hired him full time. He had already applied for another job prior to getting that one and they interviewed him three months later and hired him. So he switched jobs.

    There is work out there for those who really want it.

  • chfdcpt Dec 29, 2009

    How about an oxygen tax? It is the only thing that the legislature has not talked about taxing yet.

  • Rolling Along Dec 28, 2009

    moth...I agree 100% we are in a spiral and the bottom isn't anywhere in sight...yet.

  • moth Dec 28, 2009

    How does AIG get an 82 billion dollar gift from the govt and the states have to borrow money to pay for unemployment benefits that are mandated by the Fed govt?
    This country is done. Stick a fork in it.

  • floseh Dec 28, 2009

    Use the LOttery money,Bev, You use for every thing else except the schools,anyway.
    The Floseh

  • EZeegoing Dec 28, 2009

    We cannot continue to borrow money, where does it stop ?