Kentucky Unemployment Fund Running Out of Money

by scrosby on January 15, 2009

From Kentucky Public Radio’s Tony McVeigh

Kentucky’s Unemployment Insurance Trust Fund is rapidly running out of money, but Governor Beshear is promising there will be no disruption in jobless benefits.

Right now, there’s just over $50-million in Kentucky’s unemployment insurance fund, but at current withdrawal rates, that will be exhausted in two weeks.

Governor Beshear says the state knew this was coming, and has already arranged a line of credit with the federal government.

“Under the provisions of the federal Social Security Act, the federal government makes funds available to states under these circumstances, so that unemployment insurance benefits are not interrupted,” says Beshear.

For now, the state will borrow $185-million in the first quarter of the calendar year. Any money borrowed will have to be paid back.

The governor is also appointing a task force to study how to make the unemployment insurance fund more viable, since it has been paying out more than it takes in since 2002.

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