States May Face Worse Budget Problems
NEW YORK (1010 WINS) — State budget crunches are about to get tighter.
On the billions of dollars states borrowed from the federal government to pay unemployment benefits during the recession, $1.3 billion in interest was coming due this Fall.
State governments had hoped that the economy would’ve turned around or that Congress would loosen the terms.
However, it’s not happening. States are going to have to find that money, meaning many could face even more red ink.