Wisconsin Could Be Out of Money for Unemployment Benefits by October
Friday, May 8th, 2020 -- 9:10 AM
(AP) -Wisconsin could run out of money to pay unemployment benefits to workers who lost their jobs because of the coronavirus pandemic as early as October 11, according to a projection released Thursday by the state Department of Workforce Development.That was the most bleak of three scenarios laid out by the department. The other two, which assume fewer unemployment payments, show the fund being depleted in January or September 2021. If the state runs out of money, it could borrow from the federal government so the unemployed still receive benefit checks, said department spokesman Ben Jedd. The state’s projections don’t include future employer-paid unemployment insurance tax revenue, which would prolong the viability of the state fund. As of Wednesday, Wisconsin’s unemployment insurance fund balance was just shy of $1.9 billion.
But with more than half a million people filing for unemployment, causing the number of people out of work to reach levels not seen since the Great Depression in the 1930s, fears are rising that the state will run out of money to pay claims. The average number of claims per week is nearly double what was seen during the Great Recession that began in December 2007, the Department of Workforce Development said.
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