A recent audit of the Wisconsin Unemployment Reserve Fund shows the effect of economic difficulties facing the state. It reached an all-time high of $1.9 billion in 2000, but the fund is expected to be depleted by February.
The fund provides unemployment benefits to workers, mostly through taxes paid by employers. Created in 1932 by former Gov. Philip La Follette, it was the first program of its kind in the country.
Dick Jones, agency liaison for the Department of Workforce Development, said legislation passed in March 2008 increased the amount of money employers pay into the fund, with further increases in 2011 and 2013.
According to Jones, these increases have not been enough.
In the fall we saw a spike in claims, and they have continued to increase to the point where we are now seeing claims in record numbers,"" he said.
On Tuesday the Joint Committee on Finance passed two companion bills to help address the situation.
John Anderson, spokesperson for state Sen. Mark Miller, D-Monona, said the bills will ""allow the state to tap into federal money that will allow extended benefits for the unemployed.""
The reserve fund last borrowed money from the federal government in the early 1980s, according to the Associated Press.
State Sen. Robert Jauch, D-Poplar, said no one knows how long Wisconsin will continue to need federal funds, as it will depend on how the economy fares.
The unemployment rate during the audited period ranged from 4.3 to 5.1 percent, according to the report from the Legislative Audit Bureau. The Wisconsin Department of Revenue forecasts unemployment at 8 percent in late 2009.
