The state’s unemployment trust fund ran out of money Wednesday. However, Louisiana Workforce Commission Secretary Ava Dejoie says those receiving unemployment benefits will continue to receive them, but Louisiana is now borrowing federal dollars.
“Benefit recipients, U-I claimants, those that have lost their jobs, will not see any changes in the standard operating procedures are,” said Dejoie.
Employers fund the trust fund, so that means they could have to pay additional payroll taxes. But the governor and the state legislature are trying to address that issue.
Two weeks ago, Governor Edwards issued an executive order suspending the solvency tax.
“That gives us the opportunity to look if there’s additional CARES funding or other pots of money that can go into replenishing the trust fund and also pay down any debt the trust fund might occur,” said Dejoie.
Dejoie says since March 22nd, the state has paid out nearly seven billion dollars in various forms of unemployment compensation to over 400,000 citizens.
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