Posted: Jun 22, 2011 10:51 AM by AP Posted by James H Egbert
DENVER (AP) - Legislative economists say a Colorado fund that pays out unemployment benefits should be solvent again in the coming fiscal year.
Heavy job losses during the recession pushed the Unemployment Insurance Trust Fund into insolvency, and the state started borrowing federal money in 2010 to keep paying benefits. As of last week, Colorado had about $281 million in federal loans outstanding. An interest payment of around $12 million is due Sept. 30.
Today, Colorado's unemployment fund is about $151 million in the red, but legislative economists said this week they expect it to be solvent again within a year. They say unemployment claims are falling off, some Coloradans have exhausted their benefits, and higher payments by employers into the fund will boost revenue.
Colorado's jobless rate was 8.7 percent in May.
(Copyright 2011 by The Associated Press. All Rights Reserved.)