Officials say loans needed to bail out unemployment | St. Louis Public Radio

Officials say loans needed to bail out unemployment

Jefferson City, MO – Missouri may have to borrow $134
million from the federal government next year, to prevent the state unemployment insurance trust fund from going broke.

That was the message today from a state official to a legislative committee.

Employment Security director Gracia Backer says the only alternative is for state lawmakers to find some way to boost funding for the unemployment fund.

The projected deficit is a result of the state paying out more in jobless benefits than it is receiving in contributions from

The fund also was insolvent during economic troubles in 1983.

A state law prevents the fund from building up reserves during strong economic periods like the late 1990s. The law also restricts how quickly unemployment tax rates can be changed.