More Irresponsible Fiscal Leadership from Gov. Strickland
As Catherine Candisky reports, Ohio’s unemployment-compensation-fund problem isn’t going away anytime soon:
It has been more than a year since Ohio depleted its unemployment-compensation fund, and with the fund’s debt surpassing $2billion and growing, a fix is nowhere in sight.
No one has even proposed what should be done to shore up the fund – not the governor, not the General Assembly, not an advisory panel made up of business, labor and legislative leaders.
In fact, state leaders can’t even agree on who is responsible for solving the problem.
The Unemployment Compensation Advisory Council threw its hands up 15 months ago after it was unable to reach consensus; it said the legislature would have to figure out a solution.
GOP leaders in the Senate say Gov. Ted Strickland must come up with a plan. The governor has urged the council to take another crack at it.
Absent action from the Statehouse, Ohio will owe the federal unemployment trust fund an estimated $3billion by the end of the year. Interest payments on the loan, which begin to accrue on Jan. 1, are projected at $120 million a year.
And while Ohio has no way to pay back this money, Ted Strickland is out on the campaign trail promising voters that we will be able to extend their unemployment benefits for an extra year.
The numbers involved here, including the amount that would have to be paid every budget on this debt makes the required subsidy on Ted Strickland’s 3C slow-train look like chump change.
Maybe Strickland’s plan is that Ohio, like a 3rd world country, will ask the Federal government to start forgiving debt?