Indiana is apparently paying off a loan by the federal government to the State for its formerly insolvent unemployment insurance system. The payoff is $250 million on a loan that was once $2 billion. After years of trouble, I believe the General Assembly finally put together a plan to make the program solvent again in 2011 — after they had agreed to a fix in 2009 but postponed it.
Back in 2010, I wrote:
Eric Bradner has an article in the Evansville Courier Press that sums up what legislators have on their plate to end the session. The biggest issue is unemployment insurance. The UI fund was ignored for years and went bankrupt. The Republican Senate and the Democratic House agreed on a fix in 2009. Part of the solution involved higher taxes on the employers. The Senate Republicans, at the urging of the Indiana Chamber of Commerce, I believe, sought to undo that fix – at least temporarily. The House did them one better and proposed a bill that undid the compromise altogether. The UI fund continues to be empty and Indiana is paying its unemployed benefits by borrowing from the federal government.