x
Breaking News
More () »

Tyler's Leading Local News: Weather, Traffic, Sports and more | Tyler, Texas | CBS19.tv

Louisiana seeking federal loan as unemployment fund runs dry

Lawmakers meeting in a special session that starts next week are scrambling for financing options to refill the fund that topped $1 billion before the pandemic.
Credit: AP
Commissioner of Administration Jay Dardenne, left, the governor's chief budget adviser, speaks with Senate President Page Cortez, R-Lafayette, center, and House Speaker Clay Schexnayder, R-Gonzales, right, on Friday, Sept. 25, 2020, in Baton Rouge, La. The three men, all members of the Revenue Estimating Conference, spoke ahead of the conference's meeting. (AP Photo/Melinda Deslatte)

BATON ROUGE, La. — Louisiana will start borrowing money from the federal government in early October to keep paying benefits to jobless workers. 

The state’s once-healthy unemployment trust fund is nearly empty because of the coronavirus outbreak.

Lawmakers meeting in a special session that starts next week are scrambling for financing options to refill the fund that topped $1 billion before the pandemic, rather than relying on federal loans long term. 

Senate President Page Cortez and House Speaker Clay Schexnayder refused Friday to officially acknowledge the near-bankruptcy of the trust fund in a state forecasting meeting. 

Such a formal recognition would trigger increased taxes for business and a drop in jobless benefits for unemployed workers in 2021.

More Stories: 

► Get breaking news from your neighborhood delivered directly to you by downloading the new FREE WWL-TV News app now in the IOS App Store or Google Play.

‎Stay up-to-date with the latest news and weather in the New Orleans area on the all-new free WWL TV app. Our app features the latest breaking news that impacts you and your family, interactive weather and radar, and live video from our newscasts and local events. LOCAL & BREAKING NEWS * Receive r...