California Unemployment Fund Has a $10.3 shortfall

Another reminder of California’s woes. The California Employment Development Department unemployment fund is $10.3 Billion deficit.  Thanks to brilliant leadership in Sacramento there no money.  The solution includes raising the employment tax and/or  beg and borrow hat in hand to Washington, DC. Mc Clatchy News Service:

California businesses already pay some of the highest unemployment taxes in the country – and the tab is likely to increase.

The recession and the Legislature’s decision years ago to raise benefits have drained the state unemployment insurance fund, which now has a estimated $10.3 billion deficit.

The nonpartisan Legislative Analyst’s Office, in a recent report titled “California’s Other Budget Deficit,” said the state will probably need to raise unemployment taxes on employers as well as reduce benefits to bring the fund back in balance.

But Gov. Elect Jerry Brown vowed to ask the voters to raise taxes at the ballot box:

Raising the tax would require a two-thirds vote in both houses of the Legislature and might be politically impossible. Gov.-elect Jerry Brown has promised not to raise taxes without voter approval.

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