FROM CNN's Jack Cafferty:

California is borrowing $40 million a day from the federal government to pay unemployment benefits.

That means California is borrowing $40 million a day from you and me to pay unemployment benefits.

The Los Angeles Times reports the state will have a $362 million bill for interest alone due on a total debt of $10 billion next fall.

Thanks to the recession and poor management, California is an economic disaster zone, with one in every eight workers unemployed. More than 1.2 million Californians have lost their jobs since the start of the recession, and they're staying out of work for longer periods of time.

Plus in 2001, state lawmakers nearly doubled unemployment benefit levels without raising taxes. That was smart.

The result of all this is that if California keeps borrowing from the federal government, employers could face a steep hike in their unemployment taxes.

California is not alone here. 32 states in total have been borrowing from the federal government to pay unemployment benefits. The total is $41 billion. Some of these states are asking the feds for a deferral on repaying the loan until the economy improves.

The solution to this is fundamental: either increase contributions or decrease benefits - or both. Want to bet neither one happens?

Here’s my question to you: Should California borrow $40 million a day from the federal government to pay unemployment benefits?
http://caffertyfile.blogs.cnn.com/2010/ ... -benefits/ What is the problem? All those millions of valuable Illegal workers not paying enough in unemployment tax? I thought we have been told they contribute greatly to society and the economic stability? Is the problem the same as with the stimulas program? After all , it would have worked had it been 2 or 3 times the size it was. using that logic maybe you need another million or 2 illegals to get you back on your feet and turn things around. After all if 2 million of them are a good thing 4 or 5 million would be that much better ! I say cut them off , their progressive thinking has poisoned the rest of the country in more ways than one. You made the bed ,, NOW LIE IN IT !!!!!!!