Wednesday, December 16, 2009

A Shocking Number

When I left the Georgia Department of Labor, the Unemployment Insurance Trust Fund (the big pot of money from which unemployment claims are paid) was approaching $2 billion. Georgia's fund was consistently rated one of the best managed and its size even allowed Commissioner Michael Thurmond and the legislature to pass one of the largest tax cuts in Georgia history. For years, many employers did not pay one red cent of UI tax.

Today, the trust fund is $25 million.

That's million with an M instead of billion with a B. The DOL has paid out $1.6 billion in claims this year, forcing Commissioner Thurmond to request a loan from the Feds.

We may be numb to month after month of declining revenue numbers, but dropping the word billion for the word million - that should wake anyone up.

No comments: