Unemployment Benefit Fund Going Broke

A warning from State Auditor Claire McCaskill’s Office that Missouri’s unemployment benefit fund will be insolvent within a year. The report concludes state officials will have to borrow money and employers will have to bear the cost. According to an audit on the Unemployment Compensation Trust Fund, payments are expected to exceed revenues by more than $414-million in calendar years 2001 and 2002, leading to the fund’s insolvency. Employer costs would rise because of the need by state officials to borrow money from the federal government.