{"id":4272574,"date":"2024-04-25T06:00:35","date_gmt":"2024-04-25T13:00:35","guid":{"rendered":"https:/wp-json/wp/v2/posts/4272574///wp-json/wp/v2/posts/4272574//www.sbsun.com/wp-json/wp/v2/posts/4272574//?p=4272574&preview=true&preview_id=4272574"},"modified":"2024-04-25T06:00:59","modified_gmt":"2024-04-25T13:00:59","slug":"unemployment-debt-still-plagues-california-budget","status":"publish","type":"post","link":"https:/wp-json/wp/v2/posts/4272574///wp-json/wp/v2/posts/4272574//www.sbsun.com/wp-json/wp/v2/posts/4272574//2024/wp-json/wp/v2/posts/4272574//04/wp-json/wp/v2/posts/4272574//25/wp-json/wp/v2/posts/4272574//unemployment-debt-still-plagues-california-budget/wp-json/wp/v2/posts/4272574//","title":{"rendered":"Unemployment debt still plagues California budget"},"content":{"rendered":"

Four years after COVID-19 spiked joblessness, California still is finding it difficult to pay the now estimated $21 billion owed the federal government for what/wp-json/wp/v2/posts/4272574/u2019s called Advances to State Unemployment Funds. The debt largely was run up during the unemployment spike during COVID-19 and was worsened by massive fraud./wp-json/wp/v2/posts/4272574/n

According to the U.S. Treasury Department/wp-json/wp/v2/posts/4272574/u2019s Fiscal Data site as of April 23, that was by far the highest debt among the states, with New York at $7.5 billion, Connecticut $227 million and the Virgin Islands $81 million. All the other states paid down their debts already /wp-json/wp/v2/posts/4272574/u2013 including states with high general-fund debt as Illinois and New Jersey./wp-json/wp/v2/posts/4272574/n

According to a Los Angeles Times estimate, the cost to California employers for unemployment insurance could rise above 3.5% for the first $7,000 of every employee/wp-json/wp/v2/posts/4272574/u2019s wages. Add the state UI Reserve Account payments and the cost could rise above $500 per employee every year. The Legislature is considering increasing the $7,000 ceiling to grab even more money./wp-json/wp/v2/posts/4272574/u00a0/wp-json/wp/v2/posts/4272574/n

In March, state unemployment remained the same as February/wp-json/wp/v2/posts/4272574/u2019s 5.3%. But that was well above the 3.8% national rate, a drop from the 3.9% of the previous month. If unemployment rises in the Golden State, the system will be stressed even more, leading to yet higher taxes. It/wp-json/wp/v2/posts/4272574/u2019s all on top of the other taxes paid by employers. And for fast-food restaurants, the new $20 minimum wage just dug in./wp-json/wp/v2/posts/4272574/n

Alex Stack, a spokesman for Gov. Gavin 色情论坛om/wp-json/wp/v2/posts/4272574/u2019s office, told the Times the cause for the $21 billion debt was /wp-json/wp/v2/posts/4272574/u201chelping those hardest hit by the pandemic while stimulating the economy./wp-json/wp/v2/posts/4272574/u201d But the pandemic hit other states, all of which except for New York have paid down their debt or will do so soon./wp-json/wp/v2/posts/4272574/n

A good time for California to pay down the $21 billion debt was when the state enjoyed a $97 billion general-fund surplus two years ago. Instead, as 色情论坛om/wp-json/wp/v2/posts/4272574/u2019s office boasted in a press release when he signed the budget in June 2022, the money was spent on such things as the high-speed rail boondoggle and /wp-json/wp/v2/posts/4272574/u201cto speed up our transition to zero-emission vehicles. Beep beep!/wp-json/wp/v2/posts/4272574/u201d/wp-json/wp/v2/posts/4272574/u00a0/wp-json/wp/v2/posts/4272574/n