NM unemployment benefits drain state's coffers

From KOB-TV.com - According to current trends, the New Mexico’s Department of Workforce Solutions could run out of money for unemployment benefits by next August. On Wednesday, officials for the Department presented several options to the legislative finance committee at the Roundhouse. One idea is to cut down on unemployment payments for full time New Mexico students. Another benefit which could be scaled back is payments made to dependents. The state gives out $25 each for up to four dependents weekly if the main provider, a parent for example, loses their job. By December, the state will be paying out over a million dollars a day in unemployment benefits. “The state alone has had a 500 percent increase in unemployment claims since June of 2008, so we are paying and serving close to 50,000 people currently on unemployment,” said Carrie Moritomo with the department. Officials stressed that payments would not stop for people receiving unemployment benefits; any decrease to benefits would only affect those claiming future unemployment. The state could have to take out a loan from the federal government to keep paying benefits. If that happens, raising taxes on employers would almost be unavoidable say officials. Read more

NM unemployment benefits drain state's coffers