Ohio Unemployment Fund Ends 2020 Borrowing $1.2B From Feds
Ohio enters the new year with the economic task of repaying federal loans used to pay unemployment benefits needed during much of the pandemic.
The state started the year 2020 with more than $1.26 billion dollars in the unemployment insurance trust fund, according to the Ohio Department of Job and Family Services. Economic experts had been warning the state for years that the fund would run dry in the next recession.
However, Gov. Mike DeWine said this year was a unique challenge and there was no way to prepare for the economic crisis created by the pandemic.
The state started borrowing money from the federal government in June, with the highest monthly borrowing topping off at $334 million in July.
The month-to-month borrowing has tapered ever since and the state is ending the year 2020 owing a principle of $1.29 billion.
Interest will start to accumulate next year.