Nixon Says Mo. to Pay Off Unemployment Debt Early
JEFFERSON CITY, Mo. (AP) - Gov. Jay Nixon says Missouri employers could save $186 million in federal taxes after a revised projection indicates that money borrowed to pay jobless benefits will be repaid early.
The state Unemployment Insurance Trust Fund became insolvent in February 2009 during the economic downturn. Missouri borrowed from the federal government, and businesses pay a surcharge to repay the debt.
Nixon said Tuesday the U.S. Department of Labor revised its projection for when Missouri would pay off the loan. Now, the state is expected to repay it in November instead of May 2015. Nixon says that would reduce business's federal unemployment tax by $84 per worker.