States drain unemployment trust funds

States drain unemployment trust funds
"Michigan is hurting
Michigan, hit hard by the collapse of the auto industry, has essentially nothing left in its trust fund, said Norman Isotalo, spokesman for state's Department of Labor & Economic Growth. New initial claims are up 21% over a year ago, while the unemployment rate hit 8.7% in September, up from 7.3% a year earlier.
Though it has borrowed money from the feds to cover claims since 2006, Michigan has avoided paying interest on the loan by repaying it quickly. The state, however, no longer has the funds to repay the loan, which currently totals nearly $473 million. The debt will starting accruing interest in January, and the state will pass along the additional fees to employers."