Senate bill refinances unemployment insurance debt
Web Producer: Taylor Higgins
PHOENIX (AP) - The Department of Economic Security wants the Arizona Legislature to give it the authority to issue up to $200 million in bonds to pay back a federal government loan used to pay unemployment benefits during the recession.
The loans are routinely made to states during periods of high unemployment and then repaid when rates go back down using revenue from employer premiums for the unemployment insurance program.
Arizona's unemployment trust fund is expected to be back in the black by mid-2014. But the state will owe between $6.5 million and $8 million in interest if it doesn't repay the loan by Sept. 30. Arizona's current $311 million loan is slowly being repaid.
The bonds are essentially a refinancing of that debt that also avoids higher employer rates.
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