California’s unemployment insurance program is facing financial challenges, burdened by shortfalls and a multibillion-dollar federal loan, according to a recent report by the state Legislative Analyst’s Office.
The program provides eligible workers with partial wages if they lose their jobs through no fault of their own, the Dec. 2 report from the office said. The system works by building a trust fund with payroll taxes from employers, with the taxes collected expected to cover the benefits paid. However, the collections now “routinely fall short,” the report said.
“Both our office and the administration expect these annual shortfalls to continue for the foreseeable future. Under our projections, deficits would average around $2 billion per year for the next five years,” the report states….
2 months ago
