California Taking On Huge Debts To Pay Jobless Workers As Deficit Gets Bigger

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WILL KESSLER – Contributor

Posted for Red Baron

California is billions of dollars in debt to the federal government to pay for its unemployment insurance trust at a time when the state’s expenses far exceed its income.

The state’s government owes almost $21 billion to the federal government at an interest rate of around 2.6%, according to the Treasury Department. California borrowed the funds after a surge in unemployment which began during the COVID-19 pandemic, which sent the state’s employment trust into insolvency, according to The Los Angeles Times.

https://dailycaller.com/2024/04/18/california-debts-unemployment-benefits-budget-deficit/