South Carolina’s skyrocketing unemployment rate is soaking up all the headlines today, but buried beneath that big 10.4% number is an even bigger problem – all the money our state keeps borrowing from the federal government to pay for unemployment benefits.
In fact, assuming the current rate of $20 million a week holds, South Carolina could end up paying out $1 billion in jobless benefits this year alone.
We’ve already borrowed $187 million from the feds to cover the shortfall in our unemployment account, with another $300 million request in the hopper, but some economists are predicting the unemployment rate will reach 14% by this summer.
What happens then? How much more than $20 million a week will we be paying at that point?
Not surprisingly, our state leaders have absolutely no idea how to deal with this looming crisis.
In fact, one official with the Treasurer’s Office reportedly said that their plan was to “hope the feds don’t ask for it all back at once.”
Wow … what a strategy.
And let’s not forget that if South Carolina doesn’t pay its debt back within 2 years, we’ll be looking at an automatic tax increase on our state’s businesses.
After all, Uncle Sam has bills of his own to pay, right?
By Rob March 12, 2009 at 7:57 am
That is one hell of a lot of money.
The debt is gonna kill us…
By Rob March 12, 2009 at 8:06 am
PS…there will be a time when people see that in order to pay back the “extra $25.00 a week” that Obama has directed to be paid to people on unemployment …other services will have to be cut. Aid to poor children, medical care, education, etc…all will suffer in order that this $25.00 extra can be sent now.
I am not saying that unemployment benefits are a bad thing. But I am saying there is a choice to be made, and Obama made it, not us. Except we have to pay the bills and suffer the cuts in services long after this mess is over.
By Tim March 12, 2009 at 8:10 am
What do you propose we do, Will? I know you and the Ungov like to talk about mismanagement, but if there’s been any mismanagement, it’s been on the part of the Ungov and the legislature to refuse to see a crisis coming and repeat over and over “don’t raise taxes, don’t raise taxes.” So while the rolls of the unemployed mounted, we ran out of money so as not to offend corporate South Carolina.
What’s the alternative now? Stop paying benefits? Is the Ungov going to feed these people out of his own pocket?
By lou March 12, 2009 at 9:55 am
Well, you reckon the Commerce people could round us up some new jobs and industries?? Thats the logical solution…..
there are state and county people tasked with creating jobs… why do they still have one?
By Bill March 12, 2009 at 10:27 am
1.Do people on unemployment have to file weekly reports on their efforts to find work…like they used too?
2. Has the time one can draw benefits been lengthened? Can you draw for a longer period of time?
By John March 13, 2009 at 12:27 pm
Oh. My. God!
By Michael J. Stefonick May 25, 2011 at 1:19 pm
The state of SC will see a lot more of these people if they we can’t solve the jobs problem. It’s getting down right scary in Beaufort County, SC. Gun permits and gun sales are up.
http://beauforttribune.com/archives/category/jailhouse-report?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+MugFaces+%28MugFaces.com%29