Coronavirus: Ohio jobless fund to go broke by June without bailout, Husted says

[TexasTowelie]

COLUMBUS — Without a federal bailout, Ohio’s unemployment compensation fund will go broke sometime in June, forcing Ohio to borrow money, cut benefits or raise employer taxes to keep it going, Lt. Gov. Jon Husted said on Wednesday.

“One thing I want to reassure folks on is that does not mean you’re going to lose your benefits,” he said. “What the solution will be will in large part be up to the General Assembly. We need to work with them on this for a prescription on how we’re going to do this.

”Ohio’s unemployment compensation system has been in big trouble for more than a decade as the taxes paid by employers weren’t enough to keep up with benefits paid out. State leaders have failed to agree on a fix for years.

During the Great Recession, the fund went broke Jan. 12, 2009, forcing the state to borrow from the federal government to keep issuing unemployment checks. The state borrowed $3.4 billion and had to pay more than $200 million in interest on the loan.

Read more: https://www.daytondailynews.com/news/local/coronavirus-dewine-give-update-state-response-virus/bilyFYPTKm8mA3rBLrwYaJ/