BATON ROUGE, La. (KLFY) — Gov. John Bel Edwards said the state’s trust fund for unemployment insurance is rapidly going dry, and the state is preparing to apply for a loan from the U.S. Treasury.
Edwards said in today’s press conference that the state’s trust fund is currently at $143 million, and once the fund falls below $100 million, the state will be required to take out a loan from the feds to keep the fund solvent.
The governor said officials had hoped not to need that loan, referring to stalled stimulus talks in Congress, which would have included additional unemployment insurance funding.
The loan is bad news for Louisiana employers, as to obtain the loan, Edwards has previously explained that employers will have to pay a surcharge. This is to ensure that the state can pay the loan back. It is currently unclear how much that surcharge would be or how it would be collected.