Indiana's unemployment funds will likely run out, experts say
Thousands of Indiana residents are applying for unemployment benefits with every passing week of the coronavirus pandemic — at a rate more than double the highest levels of claims filed during the Great Recession.
That's a significant strain on Indiana's pool of money reserved for unemployment payments, which in January stood at $895 million. It's unclear exactly how long that money, which averages roughly $300 per person of the maximum $390, will last.
But experts say it's likely, if not certain, that such money will run out.
When that happens, the state must borrow money from the federal government in the form of Title XII loans, just as Indiana and other states did during the Great Recession.
It's a process that once again adds debt to Indiana's unemployment insurance fund, which already had one of the lowest ratings in the nation for financial stability before the pandemic crisis. The state finally finished paying off federal debt from the Great Recession in 2015.
Read more: https://www.southbendtribune.com/coronavirus/indianas-unemployment-funds-will-likely-run-out-experts-say/article_adf58184-7e46-11ea-9f3b-bbcce8335aef.html