It looks the news outlets are beginning to pick up on this "hidden" problem that's ripe to blow up.
Source:
http://news.yahoo.com/s/ap/20110220/...arning_ignored
Quote:
"Trust Fund Reserves Inadequate," federal auditors said in a 1988 report.
It's clear now the warnings were pretty much ignored. Instead, states kept whittling away at the trust funds, mostly by cutting unemployment insurance taxes at the behest of the business community. The low balances hastened insolvency when the recession hit, leading about 30 states to borrow $41.5 billion from the federal government to pay unemployment benefits to their growing population of jobless.
The ramifications will be felt for years.
|