Recovery from that recession has been underway for nearly a half-decade, but California still has more than a million unemployed workers and is still paying out about $6 billion a year in benefits to a third of them.
The UIF is still insolvent – nearly $7 billion in the hole – and in 2012 the feds began whittling down California’s debt by raising taxes on the state’s employers, about $3 billion so far and rising, plus hundreds of millions in interest.
It’s expected that the feds will collect nearly $4 billion more over the next two years to reduce the debt further.
The debt will disappear eventually, probably in 2019, 10 years after the UIF went into the red, but that still would leave the fund in precarious position.
Thursday, December 17, 2015
Dan Walters: State still owes one huge debt
CA better hope the stock market keeps going up. Otherwise, they are in a heap o' trouble.