MONTGOMERY, Ala. (AP) - The state anticipates borrowing about
$50 million from the federal government early in 2010 to help pay
unemployment benefits for jobless Alabamians.
Alabama's unemployment rate has doubled in the last year to 9 percent. State Industrial Relations Director Tom Surtees said Tuesday the fund that is used to pay unemployment benefits is dwindling and will have to borrow money. But he said the unemployment taxes paid by employers are going up Jan. 1, and Alabama should recoup the money to pay off the debt in 2010.
The federal stimulus package allows the loan to be interest free, provided it is paid off in 2010.
(Copyright 2009 by The Associated Press. All Rights Reserved.)