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Bill would pay interest on unemployment loan

FRANKFORT, Ky. (AP) - A bill approved by the House would let the
state borrow money to pay interest on money it borrowed to provide
unemployment insurance to Kentuckians.

The proposal by Speaker Pro Tem Larry Clark, D-Louisville,
passed the chamber 97-0.

During the recession, the state borrowed $948.7 million from the
federal government so it could continue to pay unemployment
benefits to those who were jobless.

Businesses have argued that if the state doesn't come up with a
way to make sure interest payments are made, the federal government would raise its unemployment insurance tax on employers from $63 to to $420 per employee next year.

The bill would allow Kentucky Employers' Mutual Insurance to
purchase a $79 million revenue bond to pay the 2011-2013 interest
payments.
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The legislation is HB 495.

(Copyright 2012 by The Associated Press. All Rights Reserved.)


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