Gov. Laura Kelly blocks GOP bid to pour federal relief money into unemployment fund [View all]

TOPEKA — Gov. Laura Kelly said the state’s unemployment trust fund is likely to hit zero by March after the COVID-19 crisis burns through more than $900 million set aside before the pandemic to support people thrown out of work.

The governor said the most likely strategy would be for the state to prop up the trust fund by borrowing at zero percent interest from the U.S. treasury in a manner reminiscent of steps taken a decade ago during a deep national recession. There is concern in Kansas and elsewhere unprecedented escalation of COVID-19 could drive joblessness higher and further compromise state unemployment funds.

Kansas unemployment peaked at 11.9% in April, but fell by half through September to moderate transfers from the trust fund.

“If things don’t get better, we’re likely to be bone dry some time in early spring at the latest,” Kelly said. “We will not be the first state to empty its coffers.”

Read more: https://kansasreflector.com/2020/11/15/gov-laura-kelly-blocks-gop-bid-to-pour-federal-relief-money-into-unemployment-fund/