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South Carolina's $2B Problem

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Uploaded by on Sep 30, 2009

outh Carolinas unemployment rate dropped to 11.5% in August. While the drop is welcomed news, that still amounts to nearly 250,000 people out of work and drawing unemployment benefits.
According to Comptroller General Richard Eckstrom, the state is paying out about $16-million a week in benefits. Money which— right now— comes entirely from federal loans because South Carolinas employment security trust fund is broke.

By October 2010, the South Carolina Employment Security Commission projects the state will owe the federal government $1-billion plus interest, amounting to an estimated $350-million, for loans to pay unemployment benefits. By law, repayments begin in January 2011.

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  • what happen if the state does not pay it back ? What can the FED do ?

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