© 2024 Kansas City Public Radio
NPR in Kansas City
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Kansas Likely to Need Loan for Unemployment Benefits

By Stephen Koranda

http://stream.publicbroadcasting.net/production/mp3/kcur/local-kcur-880648.mp3

Topeka, KS – The Kansas Unemployment Insurance Trust Fund is running out of cash. The fund may start drawing loans from the federal government as soon as next month to keep paying benefits.

The fund pays for unemployment benefits in Kansas. High unemployment rates have meant millions in payments and that has drained the fund over the last year. There is currently around $60 million available to pay unemployment benefits. at the beginning of last year, the fund held more than $500 million.

"We will probably some time in February have to start getting advances from the federal government," said Kansas Secretary of Labor Jim Garner. "The claimants for unemployment benefits, they're not going to notice any difference. It's just where the money comes from to pay for those benefits."

Around half of states have already taken loans from the federal government to pay for benefits. By the end of 2010, some estimates say that number could rise to 35 states.

KCUR prides ourselves on bringing local journalism to the public without a paywall — ever.

Our reporting will always be free for you to read. But it's not free to produce.

As a nonprofit, we rely on your donations to keep operating and trying new things. If you value our work, consider becoming a member.