Pennsylvania’s Unemployment Fund Is Belly-Up!

I am just a harbinger of good cheer today, aren’t I!  People need to know what the Sam Hill is going on with our state government.

Although Pennsylvania actually has an employer contribution for unemployment benefits, which should have been enough for a rainy day, we have still borrowed $3 billion dollars from the Federal government to pay unemployment benefits to out-of-work Pennsylvania residents.  The states pay the first 26 weeks of unemployment and the federal government picks up from week 27 forward. Oh and that $3 billion dollars was borrowed in the last two years!

Two problems with what should have been a great idea (employer unemployment contributions): 

1.  The amount employers pay into the unemployment fund hasn’t changed since dirt was discovered.

2.  Unemployment benefits have been increasing to make up for inflation.

When our new governator is elected and takes office in January, he or she will have this $3 BILLION dollar bill that will be due to the federal government.  Of course, we have no money to pay this bill….I’ll gladly pay you next Tuesday for a hamburger today… And this is rich… these billions of dollars borrowed from Uncle Sam aren’t built into the state budget either…much like the Medicaid money we are spending but don’t have yet.  STOP THE MADNESS!

The federal government will start to charge a penalty fee to businesses in Pennsylvania since we have no money.

A solution was proposed to help make this fund solvent again by 2017 but it was ignored.  Instead, our elected officials stick their heads in the proverbial sand (like an ostrich) and do nothing.

Food for thought!