As of Jan. 21, 2011, the state of Missouri owes $769, 201,133.40 for money borrowed for unemployment programs starting in 2009, according to research from the National Conference of State Legislatures.
“Some states borrowed money because they did not have the funds to cover the increased number of claims when the recession started,” said Jeanne Mejeur, NCSL Program Director for Legislative Information Services.
President Barack Obama has proposed legislation that would allow the states to postpone payments on the money they borrowed to cover for unemployment benefits.
“We are monitoring this situation, but haven’t taken a position on it,” Gov. Jay Nixon’s spokesman Scott Holste said in an e-mail
The total amount that states have borrowed varies, and as of Jan. 21, 2011, is approximately $42 billion, according to NCSL research.
Mejeur said the reasons states owe different amounts of money vary from state to state, including the different percentages they tax for unemployment benefits.
Mejeur said Nevada experienced a drop in tourism during the recession, which lowered their revenue coming in to go to unemployment benefits. Georgia allowed employers not to pay unemployment taxes for four years and, as a result, had to borrow more money for unemployment programs.
Mejeur said she is not familiar with the specifics for Missouri, though.
She said some states raised their taxable wage base so they generated higher revenue from unemployment taxes.
“Some states have adopted a higher taxable wage base,” Mejeur said in an e-mail. “If you’re taxing on a smaller amount of wages, of course you’re generating less revenue.”
According to the U.S. Department of Labor, Missouri’s taxable wage base is set at $13,000. The minimum for states is $7,500.
“Missouri, along with some other states, has adopted a higher taxable wage base than is required by federal law,” Mejeur said. “Because of that, Missouri employers pay more in unemployment taxes but the state also collects more revenue to replenish their unemployment fund.”