Here We Go Again: Ohio Borrows $3.1B to Pay Unemployment Claims

This week, Gov. Mike DeWine announced that Ohio has again become dependent on borrowed federal money to pay for its unemployment insurance (UI) benefits. The state has requested $3.1 billion in borrowing authority to provide UI benefits, which are 100% funded — or repaid — by Ohio employers.

For the time being, there is no interest being charged by the federal government, the governor said. But he noted that Ohio has a “long-term structural problem” with its unemployment system — one that needed to be addressed before COVID-19. This story by The Columbus Dispatch provides an overview of the longstanding problem.

As of June 18, Ohio had paid $4.1 billion to more than 700,000 Ohioans since mid-March. It took seven years to pay off the state’s $3.4 billion loan when the fund went broke in 2008. 6/16/2020