“The state announced Thursday that it will raise unemployment taxes a record 51 percent to stem losses that threaten the solvency of the unemployment insurance fund.
“For the first time in California history, the state might have to borrow from the federal government to pay benefits to people who have lost their jobs, state officials said.
“The unemployment insurance fund currently stands at $2.9 billion and is ‘going fast,’ said Employment Development Department spokeswoman Suzanne Schroeder. Even with the massive rate hike, the fund will be exhausted by early next year, according to a forecast released late Thursday.” (Courtesy of John Gisclon.)
