New Jersey Unemployment Fund TAPPED OUT

**Gardengal18** · 12-08-2008, 09:33 AM

Not for nothing, but they should not be touching these type of funds, just like they shouldn't have been touching the Social Security Funds. These Politicians need a good swift kick in the behind already!!! ugh!

Surge in jobless claims taps out New Jersey unemployment fund
by Dunstan McNichol/The Star-Ledger Monday December 08, 2008, 12:05 AM
A surge in jobless claims has battered the fund that bankrolls unemployment benefits in New Jersey, exhausting all of the $260 million emergency infusion sent five months ago and raising the prospect taxpayers will be asked for more.

An additional subsidy early next year for the state's Unemployment Insurance Trust Fund, either from the state or federal government, is not "a definite," Gov. Jon Corzine said in an interview last week. But he added: "We need to be planning."

Corzine said the fund has been overwhelmed by rising unemployment claims because lawmakers in the past diverted more than $4 billion from it to cover the cost of state aid to hospitals.

"Now the piper is coming home to roost," Corzine said. "We have to pay that piper. We have to do that either by putting money into that system from some other place, or we're going to have to get help from the federal government."

With a $1.2 billion shortfall already projected in the current state budget, finding additional state money for the unemployment fund will be a challenge.

Corzine said he hopes incoming President Barack Obama's administration will subsidize the fund, which had a balance of $750 million at the end of November.

If the fund's balances continue to decline, businesses will face an automatic $400 million tax hike next June. A similar increase on businesses was averted this year by the state's $260 million infusion.

A $400 million hit on businesses this year "would certainly devastate New Jersey's economy," said John Rogers, vice president of human resource issues for the New Jersey Business and Industry Association.

Businesses currently pay about $2 billion a year into the fund, according to the state Labor Department.

Rogers said the recession is making the business group's worst fears come true about the decisions to divert money from the fund to other areas.

At its peak about four years ago, the fund contained $3 billion. But before the state's cash infusion earlier this year, its balance had sunk to $161 million -- not even enough to meet one month's worth of claims.

"We warned the diversions the Legislature has done to the fund would come home to roost at the worst possible time," said Rogers. "We're hemorrhaging money out of a fund that was almost insolvent."

State lawmakers today are scheduled to consider a resolution that would prohibit future diversions from the Unemployment Trust Fund.

Claims against the fund surged this year as New Jersey's unemployment rate has climbed from 4.2 percent to 6 percent.

In November alone, the fund paid $169 million in claims, a 23 percent increase compared with the $138 million paid out in November, 2007, records maintained by the federal government show.

Staff writer Claire Heininger contributed to this report.

http://www.nj.com/news/ledger/topsto...ps_o.html#more

**fernykins** · 12-08-2008, 09:48 AM

Don't you just love how they think they can do anything they want with money that is not theirs........
Fern

**staciah** · 12-08-2008, 10:04 AM

It expensive enough to live here. Now this. That's exactly why we are moving out of this state.

**Gardengal18** · 12-08-2008, 10:13 AM

Originally Posted by fernykins

Don't you just love how they think they can do anything they want with money that is not theirs........
Fern

Since they created this mess by dipping into it, then it's only right that they should pay it back. I doubt their constituents, the citizens, voted to allow them to dip into it to begin with. I'm sure all those Politicians have PLENTY of money. Corzine is loaded to begin with!

**C@rol** · 12-08-2008, 11:50 AM

Corzine said the fund has been overwhelmed by rising unemployment claims because lawmakers in the past diverted more than $4 billion from it to cover the cost of state aid to hospitals.

:cangry: Darn shame. No wonder people are moving out of this state in droves.

**mmy2grls** · 12-08-2008, 01:37 PM

lol I need to stop skimming

**Rebookie** · 12-08-2008, 01:41 PM

Too much goverment... Not enough self involvment.

**Gardengal18** · 12-08-2008, 02:13 PM

Originally Posted by Rebookie

Too much goverment... Not enough self involvment.

Yes, BIG government and NO personal responsibility. Unfortunately some tend to think that Government should take care of our every need from cradle to grave.

**Kitchen Mama** · 12-08-2008, 02:34 PM

Gee does everyone think that tax payers have bottomless pockets? When and where does it stop. I do good to take care of my family without having to worry about paying more taxes to help with some of the things that they want to bail out. I could use abailout to but don't see one in my future.

**Gardengal18** · 12-08-2008, 02:45 PM

Originally Posted by Kitchen Mama

Gee does everyone think that tax payers have bottomless pockets? When and where does it stop. I do good to take care of my family without having to worry about paying more taxes to help with some of the things that they want to bail out. I could use abailout to but don't see one in my future.

Me neither.