33 states out of money to fund jobless benefits

From police horses to fireworks to wrangling stray chickens, these cash-strapped cities are eliminating all kinds of services.

 

By Hibah Yousuf

NEW YORK (CNNMoney.com) -- With unemployment still at a severe high, a majority of states have drained their jobless benefit funds, forcing them to borrow billions from the federal government to help out-of-work Americans.

A total of 33 states and the Virgin Islands have depleted their funds and borrowed more than $38.7 billion to provide a safety net, according to a report released Thursday by the National Employment Law Project. Four others are at the brink of insolvency.

 

Debt-challenged California has borrowed the most, totaling more than $8.4 billion, followed by Michigan and New York, which have loans worth more than $3 billion. Nine other states have borrowed at least $1 billion from the federal government.

"The nation's financing system for jobless benefits is under unprecedented stress," said Andrew Stettner, deputy director of the New York-based advocacy group for the unemployed. "While the recession has certainly made things worse, this funding crisis has been developing for years."

http://money.cnn.com/2010/04/08/news/economy/state_funds_jobless_benefits/

11 quirky budget cuts: http://money.cnn.com/galleries/2010/news/1003/gallery.city_state_budget_cuts/index.html