Louisiana News

Estimate: Louisiana unemployment fund could stay solvent 19 weeks amid unprecedented demand

(The Center Square) – Louisiana’s unemployment trust fund could remain solvent for 19 weeks at most amid the unprecedented demand created by the COVID-19 pandemic and response, according to Tax Foundation estimates.
“If anything, this estimate is generous, as it only takes into account claims filed through April 4 (due to the timing of data releases) and does not adjust for the degree to which these states’ funds have already been drawn down over the past two weeks,” said Jared Walczak, director of state tax policy for the Washington, D.C.-based think tank.
Wyoming could pay 321 weeks of benefits, according to Walczak’s estimates, which is more than three times longer than any other state. California, at the opposite end of the spectrum, could only pay one month’s worth of benefits.
The federal government is providing an additional $600 a week to each state unemployment insurance beneficiary and offering extended benefits once state benefits run out, but states must still pay for regular benefits, Walczak said.
Under current law, when states exhaust their trust funds, they must either find additional dollars within their own state budgets or through loans from the federal government, which must be paid back, in some cases with interest, he said.
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