Florida repays government loans with interest
Updated: Saturday, August 3 2013, 02:34 PM CDT
Back in 2009 "The Great Recession" forced the state of Florida to borrow several billion dollars for unemployment payout from the federal government.
After a little more than three years later, the debt has been repaid.
During the height of the recession - Floridians were losing jobs at a staggering rate. The state was forced to pay out *billions in unemployment.
David Hart/Florida Chamber of Commerce: "No state system was set up to handle or accommodate the depth and breadth of the great recession as it went on."
Unemployment hit its peak of 12.1 % in August and November 2010. By then, the state had already used all its cash money set aside for people without a job.
"Florida had to borrow money during the Great Recession."
In August 2009 Florida started borrowing money from the federal government…more than 3.5 billion to keep benefits flowing to the growing unemployed.
"This is one of the only times the state has had to borrow money from the federal government for unemployment. After less than four years, the state has finally paid off its debt.
When joblessness numbers began increasing, the state hit businesses with a 20 percent hike in their unemployment taxes. The hike kept the state from borrowing even more.
Best way to keep trust fund strong is if people are employed."
Back in 2009, it was anyone's guess on how long the downturn would last.
Vicki Meyers/FICPA Aug. 20, 2009: "We don't know the length of the recession, we don't know how many employees will remain in the state after the recession."
36 states had to borrow money to pay claims. Florida is the 14th to pay its loan with interest back
The state relied on the federal money to pay unemployment claims for more than three and a half years.
With the debt paid off, the unemployment tax on employers will decrease next year.
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