The US DOL Employment and Training Administration UI Actuary has released a report on state unemployment insurance trust fund solvency that reviews the status of each state’s trust fund and the overall health of the system.
Key points addressed in the report include:
- FUTA Rates with Credit Reductions and Add-ons and Projections for 2015 – 8 states have “potential” BCR Add ons for 2015
- State Trust Fund Solvency compared to US DOL Guidelines – only 17 states meet the guidelines
- A review for the first time of the use of private market revenue bonds and loans from 2010 through 2014
- State eligibility for 2015 Interest Free Loans – the new federal standards effectively eliminate the availability of interest free loans to states with outstanding debts
The report demonstrates the wide disparity between states with respect to the solvency of state unemployment trust funds and the increase in the use of private market revenue bonds and loans to repay deficits. In 2010 the private market accounted for just $1.96 billion of the $42 billion in outstanding state UI debt and by 2014 the private market accounted for $8.92 billion of the remaining total of $23 billion.