The math is simple. Unemployment spiked and we paid out the trust fund’s remaining $700 million on unemployment benefits. Then, we had to borrow $721 million as more people filed for unemployment benefits. We’re still borrowing. Had we been fiscally conservative, we would have sustained our $2 billion in reserves, rather than using it as a political kitty to buy votes. Georgia would never have borrowed federal dollars and would be “in the black” today.
Now we have a three-tiered problem: a large loan hanging over our heads, interest payments on that loan, and a trust fund that’s broke.
http://www2.wjbf.com/news/2012/mar/13/georgia-labor-commissioner-unemployment-insurance–ar-3403490/
