The Board of Economic Advisers has been meeting with other state officials and the business community to discuss how to rebuild the state’s Unemployment Trust Fund and repay funds borrowed from the federal government’s pool of unemployment loans.
Currently the board is looking at a recommendation that would repay $1 billion in loans, beginning the first of 2011, using a reduction in the federal credit against the state unemployment tax paid by businesses. It will take the state until 2019 to pay off just the borrowed money.
South Carolina Chamber President Otis Rawl says to generate an extra $400 million, as recommend to repay the federal loan and rebuild the trust fund, it could cost businesses another $140-$200 per employee.
Rawl says the business community is ready to step up and do what has to be done. “But on the other side of it, we’re in pretty trying times right now. From an economic development standpoint, we could loose any kind of initiative we have in this state. If you increase too quick, you put jobs at risk. We have to be careful about what we do.” [Read more...]