XPost: ca.politics, alt.fan.rush-limbaugh, talk.politics.guns
XPost: sac.politics, alt.politics.economics
https://www.msn.com/en-us/money/markets/california-unemployment-fund- declared-insolvent-following-55b-fraud-businesses-to-bear-costs/ar-
AA1nyB7g
California is grappling with a severe financial crisis in its unemployment insurance fund, a situation described by experts as “structurally
insolvent” due to the staggering amount of fraud and overpayments during
the COVID-19 pandemic. This crisis has forced the state to confront a
daunting $21 billion loan from the federal government, an obligation it currently lacks the means to repay.
Efforts to address this financial quagmire have led to proposals from California Democrats to enact sweeping changes, including quintupling unemployment insurance taxes and nearly doubling unemployment benefits.
These proposals reflect the urgency of the situation, as the state’s unemployment insurance fund faces unprecedented strain.
The magnitude of the challenge facing California’s unemployment insurance
fund is underscored by the numbers. In 2020 alone, the state borrowed a staggering $17.8 billion to sustain unemployment payments, a figure
projected to balloon to $20.8 billion by the end of 2024 due to
insufficient payments. Compounding the issue is the anticipated rise in unemployment, with projections indicating an increase from 804,000
Californians in 2022 to 930,000 by 2025. As a result, benefit payments are expected to skyrocket from $5 billion in 2022 to $6.8 billion in 2025,
further straining the already burdened fund.
The root of the problem lies in the rampant fraud and overpayments that
have plagued California’s unemployment insurance program. To put this into perspective, the state’s Legislative Analyst’s Office has labeled the
program “structurally insolvent” due to an imbalance between benefit
payments and state payroll tax contributions, a gap projected to reach
$1.6 billion annually by 2024 and 2025.
Under federal law, if a state’s unemployment insurance fund remains
indebted to the federal government for two consecutive years, an
escalating tax increase on employers is automatically triggered to repay
the loan. While these tax increases are expected to generate an additional
$400 million per year, they are insufficient to alleviate the fund’s
financial shortfall.
To address the crisis, California is exploring various options, including seeking debt forgiveness from the federal government and implementing significant increases in unemployment taxes. However, the fate of these measures remains uncertain pending federal approval and legislative
action.
The Acting U.S. Secretary of Labor Julie Su’s office has hinted at the potential waiving of state repayment obligations to the federal government
for ineligible benefits, pending approval. Nevertheless, if federal
forgiveness is not forthcoming, California may proceed with plans to raise unemployment taxes and increase weekly maximum benefits, contingent upon legislative approval. However, recent developments, including the
cancellation of a bill’s first hearing, suggest ongoing uncertainty
surrounding the state’s response to this unprecedented financial
challenge.
--
We live in a time where intelligent people are being silenced so that
stupid people won't be offended.
Durham Report: The FBI has an integrity problem. It has none.
No collusion - Special Counsel Robert Swan Mueller III, March 2019.
Officially made Nancy Pelosi a two-time impeachment loser.
Thank you for cleaning up the disaster of the 2008-2017 Obama / Biden
fiasco, President Trump.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp. Obama sold out heterosexuals for Hollywood
queer liberal democrat donors.
President Trump boosted the economy, reduced illegal invasions, appointed dozens of judges and three SCOTUS justices.
--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)