New York State strained by unemployment claims.

• Position: News Briefs - Brief Article

Insufficient payroll tax reserves have forced the State of New York to turn to the federal government for help in paying unemployment claims. The state will borrow $350 million each month to cover the cost of unemployment benefits, and has raised the payroll tax 12 percent to stabilize the fund. The tax increase, expected to generate $300 million annually, will be used in part to pay off the loans. At the close of the last fiscal year, the state had reserves sufficient to cover four...