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With Unemployment Soaring, NY State Borrows from Feds
By
John Del Signore
Published Jan 22, 2009
Modified Jan 22, 2009
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By
John Del Signore
Published Jan 22, 2009
Modified Jan 22, 2009
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Since January 1st, the state's unemployment fund has been borrowing roughly $90 million a week from the federal unemployment trust fund, and the deficit has already reached $212 million. M. Patricia Smith, the state's labor commissioner, tells the Times, "I think we went insolvent about two hours into 2009. We're seeing 50 percent more claimants each week than a year ago." Soup is good food! The article goes into infuriating detail about how New York has the lowest unemployment benefits in the region, and the deficit is caused not just from the spike in joblessness, but because the state has not increased the payroll tax that covers the unemployment fund in nearly a decade. With Democrats finally controlling the Legislature, there is some hope that the state might finally upgrade the system to cover the downsized masses, but in the meantime, the Fed's charging 4.64% interest, and New York's debt to Uncle Sam is expected to exceed $2.5 billion by the end of 2010.
Tagged
deficit
federal funds
new york
paterson
unemployment benefits
washington
John Del Signore
Originally from the Albany area, John Del Signore has called NYC home since 1995. In addition to his thousands of meticulously-crafted bespoke blog posts for Gothamist, his writing has also been published in The Awl, Deadspin, The Nervous Breakdown, and performed at The Brick Theater in Brooklyn.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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