Wed., November 18, 2009 7:11am (EST)

State Jobless Fund May Need Federal Loan
By Edgar Treiguts
Updated: 5 years ago

ATLANTA  —  
State Labor Commissioner Michael Thurmond says federal help may be needed to keep jobless payments going.
State Labor Commissioner Michael Thurmond says federal help may be needed to keep jobless payments going.
The state’s top labor official say a federal loan might be needed next month to keep Georgia’s unemployment insurance fund from drying-up.

State Labor Commissioner Michael Thurmond says a decision on whether to request a loan could be made in the next few weeks, depending on how quickly the benefits fund runs-out. Thurmond says the federal stimulus legislation allows for states to ask for an interest-free advance on jobless benefits funding.

One year ago, the state had $1-billion in the fund...that's now down to $139 million. Georgia has been averaging monthly payouts of $147 million to out-of-work Georgians.

Thurmond says the consideration of asking for a loan is a "clear indication of the deep and severe economic downturn" in the state.