Staff Reports
California’s unemployment insurance fund is in deep trouble, folks. The state is drowning in $55 billion in fraud and overpayments due to the COVID-19 crisis. Now they’ve got a whopping $21 billion unemployment benefits loan from the federal government that they can’t even begin to pay down.
And who’s coming to the rescue? Well, it’s the California Democrats, proposing to quintuple unemployment insurance taxes and nearly double unemployment benefits. Their solution to this mess is taking even more money from hardworking Americans’ pockets.
In 2020, California had to borrow a jaw-dropping $17.8 billion to keep making payments from its unemployment insurance fund. And guess what? That number is only projected to climb to a mind-boggling $20.8 billion by the end of 2024. With unemployment on the rise and benefit payments projected to grow, it’s clear that California is in for a world of financial hurt.
🤯California's Unemployment Nightmare: $55B Fraud & Insolvency👊
Last updated 34 minutes ago
The California unemployment insurance fund has been declared 'structurally insolvent' due to a staggering 💰$55 billion in fraud and overpayment during the COVID-19 crisis, resulting in… pic.twitter.com/KdbF3Lqmmy— TX63Collection24 (@hamak21408) April 23, 2024
But wait, there’s more! The state’s non-partisan Legislative Analyst’s Office has declared the program “structurally insolvent” thanks to the $55 billion in fraud and overpayments. And guess who was in charge during this whole debacle? None other than Acting United States Secretary of Labor Julie Su, who oversaw the state’s fraudulent payments, including nearly $1 billion to felons in prison. Yes, you heard that right – felons in prison were raking in the cash thanks to this broken system.
Now, if that’s not bad enough, federal law says that if a state’s unemployment insurance fund owes money to the federal government for two consecutive years, then the taxes on employers go up. And we’re not talking chump change here – it’s a $21 increase per worker per year. And guess who’s left holding the bag? That’s right, hardworking employers who are already struggling with the economic aftermath of the pandemic.
But fear not because Acting U.S. Secretary of Labor Julie Su’s office announced the potential waiving of state repayment to the federal government for ineligible benefits. It’s like they’re trying to sweep their mess under the rug and hope no one notices.
California unemployment fund ‘insolvent’ due to $55B fraud, businesses to pay https://t.co/rkMIlG0iIf https://t.co/rkMIlG0iIf
— Washington Examiner (@dcexaminer) April 24, 2024
And suppose federal forgiveness doesn’t come through. In that case, the state is considering sticking it to the hardworking people of California even more by quintupling unemployment taxes and nearly doubling weekly maximum benefits. And to make matters worse, State Sen. Maria Durazo, a Democrat from Los Angeles, just canceled the bill’s first hearing, leaving many questions unanswered.
So, there you have it, folks. California’s unemployment fund is in shambles, and the Democrats think the solution is to squeeze even more money out of the hardworking people of the state. It’s a mess, and someone needs to clean it up.
