CalMatters Commentary - California is borrowing billions of dollars from the federal government to cover unemployment insurance benefits to jobless workers, but how it will be repaid remains uncertain.
A single paragraph on Page 180 of Gov. Gavin Newsom’s revised 2021-22 budget refers to one of the state government’s most vexing dilemmas – an immense debt it owes to the federal government for support payments to millions of Californians who lost their jobs during the Covid-19 pandemic.
By the end
By the end of the year, the state’s Unemployment Insurance Fund is expected to owe more than $24 billion that unless Congress forgives the debt must be repaid with interest.