Ohio unemployment system to pay off federal loan with federal money
Gov. Mike DeWine will provide an update on Wednesday’s struggling Ohio UI system, which went bankrupt in June 2020 and had to borrow nearly $ 1.5 billion to keep unemployment checks going. to flow.
DeWine, Lt. Gov. Jon Husted and Ohio Chamber of Commerce CEO Steve Stivers hold a press conference at a Columbus-area car dealership to discuss federal loan repayment.
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Ohio’s unemployment insurance system has been slammed by claims during the coronavirus pandemic, inundated with fraud and hampered by outdated computer systems.
Unemployment claims soared in March 2020 following statewide closures to slow the spread of the coronavirus. Like more than a dozen other states, Ohio has had to borrow from the federal government to keep sending unemployment checks.
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Lawmakers allowed Ohio to use federal funds to pay off the federal loan. Paying it off means Ohio employers won’t have to pay higher unemployment taxes.
Previously, the system was insolvent in January 2009 during the Great Recession. Ohio then borrowed $ 2.6 billion from the federal government and had to pay $ 250 million in interest.
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The system provides benefits to workers who have lost their jobs through no fault of their own and are ready to work.
This story will be updated.
Laura Bischoff is a reporter for the USA TODAY Network Ohio Bureau, which serves Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal, and 18 other affiliated news organizations in Ohio.