JEFFERSON CITY, Mo. (AP) — A surge in unemployment caused by the coronavirus shutdown has started to take a financial toll on state jobless funds.
At least six states already have asked to borrow money from the federal government to pay unemployment claims because their state funds are expected to run out.
Analysts say many more states are likely to follow suit in the coming months. The insolvent state trust funds won’t prevent payments from going to the unemployed.
But the borrowing could lead to higher taxes on business to replenish the funds after the economic downturn subsides.
