Money for jobless benefits running low
Some states, including S.C., seek loans from the federal government to pay the unemployed.
By Jennifer Steinhauer
New York Times


With unemployment claims reaching their highest levels in decades, states are running out of money to pay benefits, and some – including South Carolina – are turning to the federal government for help or increasing taxes on businesses to make the payments.

Thirty states are at risk of having the funds that pay out unemployment benefits become insolvent over the next few months, according to the National Association of State Workforce Agencies. Funds in two states, Indiana and Michigan, have already dried up, and both states are borrowing from the federal government to make payments to the unemployed.

In South Carolina, officials recently requested a $15 million line of credit.

“Right now we have $40 million in our trust fund, and we are paying out around $11 million a week,â€