Indiana on pace to deplete jobless benefits in September

Indiana’s unemployment insurance trust fund will be depleted in September if Hoosiers continue seeking assistance for joblessness at the current pace due to the coronavirus pandemic, a state official says.

Posted: Aug 7, 2020 12:44 PM

INDIANAPOLIS (AP) — Indiana’s unemployment insurance trust fund will be depleted in September if Hoosiers continue seeking assistance for joblessness at the current pace due to the coronavirus pandemic, a state official says.

The fund, which provides jobless benefits for the unemployed, had about $886.8 million in early March, before the pandemic, according to data from the U.S. Department of Treasury. But the fund’s balance had fallen to $171.8 million as of Aug. 5, The Indianapolis Star reported.

The Indiana Department of Workforce Development projects the fund would become insolvent sometime in September because of the pace that the state is burning through the remaining money.

“We’ve only probably got a handful of weeks if we continue the current pace of payments,” said Josh Richardson, the state agency’s chief of staff.

Hoosiers have filed 948,000 new requests for unemployment insurance benefits over the course of about 10 weeks due to the economic fallout from the pandemic, according to a tally of initial claims by The Indianapolis Star. More than 200,000 people have continued to file for benefits after submitting an initial claim.

Because Indiana’s trust fund is financed by payroll taxes, money is consistently added to the fund. But those taxes haven't been enough to keep up with the unprecedented level of pandemic-related job losses.

The Treasury Department maintains Indiana’s unemployment insurance trust fund. There are no federal requirements for the number of funds a state should keep in its unemployment insurance trust fund.

When the fund is depleted, Indiana can borrow money from the federal government to cover unemployment insurance compensation.

“There’ll probably be a grace period where there’s not going to be any interest charged, probably for a couple of years,” said Christopher O’Leary, senior economist with the W.E. Upjohn Institute for Employment Research. “The state will have a chance to pay it (the loan) back without incurring any interest, so it’s just a very simple mechanism.”

Indiana has borrowed from the federal government before to cover unemployment insurance benefits. In the early 1980s, the state used a loan to cover an unemployment insurance fund deficit.

Indiana also depleted the fund during the Great Recession, when unemployment skyrocketed and demand for compensation exceeded reserves. The state borrowed upward of $2 billion to pay unemployment claims. It finished repaying the loan several years ago, according to published reports.

Indiana’s looming trust fund insolvency isn’t unique. Numerous other states have applied for federal advances to cover unemployment insurance benefits. According to Ernst & Young LLP, 13 states and jurisdictions applied to receive federal Title XII advances to cover unemployment insurance benefits by July 1. They are California, Massachusetts, Colorado, Delaware, Hawaii, Illinois, Kentucky, Minnesota, New York, Ohio, Texas, the Virgin Islands and West Virginia.

West Lafayette
Few Clouds
56° wxIcon
Hi: 64° Lo: 42°
Feels Like: 56°
Kokomo
Broken Clouds
58° wxIcon
Hi: 61° Lo: 40°
Feels Like: 58°
Rensselaer
Scattered Clouds
55° wxIcon
Hi: 59° Lo: 39°
Feels Like: 55°
Fowler
Scattered Clouds
55° wxIcon
Hi: 59° Lo: 40°
Feels Like: 55°
Williamsport
Broken Clouds
58° wxIcon
Hi: 61° Lo: 41°
Feels Like: 58°
Crawfordsville
Clear
57° wxIcon
Hi: 63° Lo: 41°
Feels Like: 57°
Frankfort
Broken Clouds
57° wxIcon
Hi: 62° Lo: 39°
Feels Like: 57°
Delphi
Broken Clouds
57° wxIcon
Hi: 61° Lo: 40°
Feels Like: 57°
Monticello
Broken Clouds
57° wxIcon
Hi: 60° Lo: 40°
Feels Like: 57°
Logansport
Clear
57° wxIcon
Hi: 61° Lo: 39°
Feels Like: 57°
A Cool Start to October.
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 120019

Reported Deaths: 3632
CountyConfirmedDeaths
Marion21671768
Lake10772325
St. Joseph6763116
Elkhart6755112
Allen6411206
Hamilton4997110
Vanderburgh390632
Hendricks2789125
Monroe270837
Tippecanoe265213
Johnson2383126
Clark229357
Porter223347
Delaware204162
Cass19619
Vigo190628
Madison173575
LaPorte153241
Warrick142847
Floyd142064
Howard134164
Kosciusko130117
Bartholomew120357
Marshall102924
Dubois102119
Boone100346
Grant97237
Hancock95143
Noble93532
Henry83027
Wayne78115
Jackson77910
Morgan73940
Shelby68929
Daviess68429
Dearborn67928
LaGrange65111
Clinton64414
Harrison60124
Putnam59211
Gibson5606
Knox54410
Lawrence53029
Montgomery51222
DeKalb50111
White49114
Decatur46339
Miami4394
Greene43236
Fayette42314
Jasper4032
Steuben3997
Scott39611
Posey3712
Sullivan33912
Jennings31812
Clay3155
Franklin31525
Ripley3098
Whitley2956
Orange28924
Adams2833
Carroll28313
Wabash2758
Starke2747
Wells2734
Washington2702
Spencer2693
Huntington2543
Jefferson2543
Fulton2472
Tipton23323
Randolph2308
Perry22613
Jay1931
Pike1771
Newton17511
Owen1721
Martin1690
Rush1584
Vermillion1330
Fountain1302
Blackford1243
Pulaski1141
Crawford1110
Parke1112
Brown1023
Benton870
Ohio797
Union790
Switzerland680
Warren411
Unassigned0227

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events