Florida's unemployment benefits fund insolvent

Few fixes for Florida's insolvent unemployment benefits fund
www.tampabay.com...

It's like sipping through a straw to put out a raging fire.

The fund that Florida uses to pay unemployment benefits officially ran dry this week. A victim of under­funding, it became overwhelmed by the prolonged recession and the pressure to meet benefit needs brought on by the state's 10.7 percent jobless rate.

A year ago, Florida's unemployment insurance trust fund sat fat and happy with $1.9 billion in its coffer. The fund dipped to $1 billion by March, $449 million by July and zilch on Monday.

"Florida's program is stingy, because it pays the unemployed so much less than the national average, and it's strict because it refuses benefits to a greater number of the unemployed than the national average," says Rick McHugh, a staff attorney with the National Employment Law Project in Ann Arbor, Mich. "And yet it still managed to become insolvent, because its leaders lack the political will to fix it."

The result? Florida is now borrowing from the federal government — a lender hardly flush with money — to keep close to half a million unemployed Floridians receiving an average of $240 a week for up to 26 weeks. The state will borrow, interest free, $300 million this month and up to $310 million in September.

Beyond that, nobody knows. But it looks unlikely any windfall will appear to revitalize the state fund in the near term.

This doesn't sound good... :shk:

I'm from Southern Michigan...we have one the highest Unemployment Rates in the US...can we be far behind???

www.wlns.com...

~
For Jackson County, the rate is now at 15.9%, that's up from the 15.5% reported in June. In Hillsdale, the rate is now at a whopping 20%, up from 19.9%. Hillsdale is one of the hardest hit areas throughout Michigan when it comes to unemployment.

(Thanks to Vitchilo)

[edit on 8/28/2009 by Hx3_1963]

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A year ago, Florida's unemployment insurance trust fund sat fat and happy with $1.9 billion in its coffer. The fund dipped to $1 billion by March, $449 million by July and zilch on Monday.

reply to post by Absum!
~$2B seemed like a lot at the time...not...the losses accelerated as time went by it appears... :shk:

This is going to become the *norm* in the near future I suspect...

California/Pennsylvania/New York running on fumes now, just to name a few...

[edit on 8/28/2009 by Hx3_1963]

It's going to get worse! A lot worse.

Good find HX3.

The worst part is that the unemployment is 5-7% higher than what the government is really saying.

reply to post by Tentickles
Oh Geez Edith...why'd ya have to go and say that?!?

I know...

So if it's ~17% nationwide Michigan is ~25%-30% ???

Hello Depression-Ville...

What shall we call them this time...suggestion??? (Think Hoover-Villes)

[edit on 8/28/2009 by Hx3_1963]

I'm at my mother-in-laws house
our local news tonight said that things are looking better
our state govnr. stated that our funds for un-employ are very low but things
will be back to almost normal at 2013!
I litterly dropped a bottle of insulin that I had in my hand
( 40 bucks down the drain)

If Florida is out of money, the payments should stop.

You don't borrow money like everyone's doing.

Stop the payments, let's get these unemployed up to Washington, and let Washington explain their damned stupidity in handling this economy.

All they had to do in January, or February, was cut all income taxes.

Too late now, we're sunk.

The more broke people, the more pissed off people, the sooner we pull the plug on Washington.

If Florida could secede, we could handle our own affairs. We're drowning, and it's Washington who's dragging us down.

I guess I could add this as I mentioned my State Michigan & California...

Funny we don't hear much about this around these parts...Hmmm...guess my Kids & Grand Kids will have more Slavery to endure...

With the state unemployment rate at heights not seen since the mid 1970s, Florida's predicament is cruel but not unique. Michigan and California — with unemployment rates topping 15 and 11 percent — already have borrowed $2.4 billion and $2.6 billion from the feds. At least 18 states have run out of funding to cover unemployment benefits for their residents. Total borrowings already exceed $13 billion, and experts say 30 or more states could eventually be forced to ask for federal money.

[edit on 8/28/2009 by Hx3_1963]

reply to post by dooper


Well good ole Charlie Crist didn't help spending the stimulus money on school teachers, special education teachers and guidance counselors. To me that just says he paid the school budget off with the stimulus money instead of creating jobs.

Think about it for a minute.

The Federal government has no money.

The only money they have is from the citizens in the States.

How in hell can sending our money to Washington, who takes it's cut, and then sends or loans our own money back to us - make any sense at all?

I'm telling you, the United States must have some of the most stupid people in the world to allow this insanity.

We could really use a national catastrophic event right now.

Anything to toss Washington off our backs.

And maybe we can start over.

Whats also really aggravating me ---
right after our unemployment news how the money will run out soon but will be better by 2013

Sports news -- MINOR league baseball team get new stadium payed by state to "help" sales of tickets cause old stadium. Now that stadium was built already but the state is footing the bill. what the -- no money to help us out of the job people? but you can build a freaking stadium? for a freaking MINOR league team? I am planning a trip to my capital soon ( of my state ) to voice my opinion. May I be heard.

reply to post by JBA2848
Well that's part of Obama's Save or Create Mantra on this debacle...

Remember...he planned to create 1.5M jobs...then save or create...now I think he's down to try to pay unemployment for 1.5M...

What a mess the Baron Robber Banksters got us into...and the Gov just bent over and handed them generations of our Slavery...

[edit on 8/28/2009 by Hx3_1963]

reply to post by Hx3_1963


Federal stimulus money makes Florida schools' picture less grim

In one fell swoop, the federal government may have turned the dreary school funding situation in Florida from disastrous to merely terrible.

The $789 billion stimulus package that President Obama signed Tuesday is slated to send more than $3 billion to Florida's K-12 public schools over two years, including hundreds of millions of dollars that may patch massive holes in district budgets next year.

Funding details for individual school districts remain sketchy.

But statewide, the federal money could shrink the size of Florida's pending education shortfall by half. And for some hard-hit districts, it might be enough to save jobs and critical programs and prevent teacher pay cuts.

.

Since October 2007, the Legislature has cut $1.4 billion in core K-12 education funding, and may have to trim $300 million more before this fiscal year ends in June. Insiders peg next year's education hole at $1.5 billion to $2 billion.

The stimulus pours relief from several pots of money.

According to one analysis, Florida schools will get $622 million in special education grants, $509 million for high-poverty schools, $148 million in school-improvement grants, $75 million for Head Start, $109 million in child care and development grants, and $31 million for education technology. In higher education, Florida will get $937 million for Pell grants.

More important, Florida schools will get $2.2 billion from a fiscal stabilization fund, which Congress set up to help state and local governments balance budgets and avoid layoffs.
.

And this is Florida ex Jeb Bush now Charlie Crist causeing this mess with Florida state taxes and property taxes not federal taxes. And im glad Charlie Crist is dropping out next election. And what does that say when he doesn't want to run again. Then you have Senator Mel Martinez dropping out to not running for reelection.

reply to post by dooper


So you want to punish the people MORE because their govt didnt handle things properly? I dont think payments should stop...I live in FL and I know many people who are very appreciative for these payments they get. I know a few people who had wonderful careers going and they lost their job due to cut backs and they cant find jobs anywhere! I myself lost a really good job due to cut backs and I have applied everywhere and I literally have been told I am overqualified! What a bunch of BS!

reply to post by mblahnikluver


What Dooper is getting at is that if the Federal Government would stop sticking their fingers in places they have no Constitutional right to medal in, then the states would have enough money to deal with the problems that come up. The money is already yours. Why should you have it sent first to DC then allow a bunch of idiots to send it back when and if THEY feel it necessary at a high interest rate?

Zindo

reply to post by mblahnikluver


You're not talking to someone from Kansas. I live right here in Florida as well.

I know folks who are desperate.

But you don't make it worse, putting undue burden on others just to perpetuate bad decision making.

When my checkbook gets low - I stop spending.

My house is paid for. My cars and trucks are paid for. I didn't buy a boat, spend money on nice vacations, I didn't have the latest HDTV, DVR, or pay folks to cut my lawn.

I paid cash, or I didn't get it until I had cash.

So right now, though my own business is hurting drastically, it doesn't take but a trickle to keep me floating.

I was responsible. I didn't run up debts, credit cards, or bank loans.

I didn't have fun like a lot of these folk who are in debt up to their ears had. I'm sure they all had a great time.

It's over. The party is over.

Stop the spending.

There's NO MORE MONEY.

[edit on 28-8-2009 by dooper]

Originally posted by dooper
reply to post by mblahnikluver

 

You're not talking to someone from Kansas. I live right here in Florida as well.

[edit on 28-8-2009 by dooper]

Not that there's anything WRONG with people from Kansas, right?

One thing that I found REALLY confusing....when CA advertised it's troubles...the feds basically told them that they were on their own...but now they are lending 300 million, that they don't have to Florida, to pay people that don't have jobs?

Unemploymennt sucks.

I didn't agree with you at first, Dooper, about sending the unemployed to Washington, but the more I thought about it....

What would be the difference? If FL is getting its money from DC to pay unemployment, there IS no difference...maybe it's DC's fault that these people are unemployed anyway....

In a sick way, I'm happy to hear this news. It hurts to hear about people suffering, but that's what it's gong to take. It's going to take angry people to finally stand up, before anything changes.

What I don't get is why they aren't just letting FL sink? Does anyone know if CA received any help for it's unemployment fund?

[edit on 28-8-2009 by KSPigpen]

reply to post by KSPigpen


Absolutely NOTHING wrong with Kansas!

Maybe a requirement for obtaining extended unemployment checks is that each recipient spend five days per month in Washington protesting this dumbass spending.

Well...I was waiting for something like this here... :shk:

Unemployment funds stalled
mlive.com

About $140 million in federal stimulus funds is available to the unemployed across the state, but politics and fear of further harming businesses are holding up the distribution of that money.

To access the funds, the state would have to extend benefits to part-time workers and allow workers to collect benefits while training for a new career.

The Democratic-controlled House approved the bills earlier this year on a largely party line vote. The issue remains stalled in the Republican-controlled Senate.

``We think that is such a needed life raft in this time of crisis,'' said Judy Putnam, spokeswoman for the Michigan League For Human Services. ``It would be foolhardy to turn it down.''

[edit on 8/29/2009 by Hx3_1963]

Florida really does have its problems cut out for them. I am living in Florida for one, so I know. Even in ritzy glitzy Boca Raton where I live, there are a lot of "for sale" signs on mansions near the ocean and Boca Hotel. Yet oddly enough they are also building a lot of stuff down here as well. I can only speak for South Florida though...I met Alex Sink , the CFO of florida and who also a candidate for governor, at a dinner FPL threw for florida companies (Deloitte, which I work for, was invited though Deloitte doesn't really have that much of a presence down here compared to say New York or London). She seems pretty nice and well rounded. I'll have to see what she has to offer though.

[edit on 30-8-2009 by RetinoidReceptor]