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Indiana plans to borrow $300 million for jobless benefits

A flood of unemployment claims related to the coronavirus pandemic has caused Indiana officials to seek as much as $300 million in loans from the federal government.

Posted: Sep 21, 2020 9:03 AM

INDIANAPOLIS (AP) — A flood of unemployment claims related to the coronavirus pandemic has caused Indiana officials to seek as much as $300 million in loans from the federal government.

The borrowing is needed because the state’s unemployment fund had about $40 million at the end of August, down from nearly $1 billion before joblessness exploded in March.

The state is seeking $60 million to cover shortfalls for September, plus a projected $120 million each for October and November, said Josh Richardson, chief of staff at the Indiana Department of Workforce Development.

“We know that we’re going to borrow,” Richardson said. “There was no reason to wait any longer.”

Indiana is among more than 20 states and territories seeking federal loans.

About 162,000 people in Indiana were being paid jobless benefits as of Sept. 5 from the insurance fund, which comes from taxes paid by businesses, according to federal reports. Some 217,000 more Indiana residents sought payments from the federal pandemic unemployment assistance program, which expanded coverage to workers otherwise ineligible for state benefits, as of Aug. 29.

The state has paid out about $5 billion under the state and federal programs since March 1, including more than $1.2 billion in state benefits, Richardson said.

Indiana’s unemployment rate, which was 3% before the pandemic, reached 17.5% in April before dropping to 6.4% for August.

The state borrowed about $2 billion from the federal government to pay unemployment claims from the 2007-09 recession, paying off those loans in 2015.

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Indiana Coronavirus Cases

Data is updated nightly.

Cases: 947918

Reported Deaths: 15377
CountyCasesDeaths
Marion1291181990
Lake635721103
Allen53899761
Hamilton44082449
St. Joseph42122590
Elkhart33803491
Vanderburgh30574449
Tippecanoe26915251
Johnson23727418
Hendricks22410342
Porter21832347
Clark17562231
Madison17492385
Vigo16302285
Monroe14545191
LaPorte14389239
Delaware14183222
Howard13971273
Kosciusko11498135
Hancock10935166
Warrick10737178
Bartholomew10635170
Floyd10514208
Wayne10077226
Grant9213204
Morgan8928160
Boone8463111
Dubois7791123
Dearborn769490
Henry7691133
Noble7466101
Marshall7409128
Cass7219118
Lawrence7026153
Shelby6647111
Jackson661386
Gibson6190107
Harrison609386
Huntington604495
Montgomery5853105
DeKalb581091
Knox5535104
Miami548888
Putnam543268
Clinton537465
Whitley529354
Steuben501768
Wabash488692
Jasper483861
Jefferson474492
Ripley457777
Adams446068
Daviess4231108
Scott409165
Clay394957
White393858
Greene393392
Wells389884
Decatur388797
Fayette378578
Posey362341
Jennings356056
Washington334747
LaGrange325175
Spencer321136
Fountain318455
Randolph317190
Sullivan309449
Owen287064
Starke282864
Fulton280454
Orange277859
Jay257038
Perry254152
Carroll245229
Franklin242838
Rush237030
Vermillion235050
Parke221420
Tipton212055
Pike211740
Blackford170534
Pulaski168551
Crawford147318
Newton145845
Benton143916
Brown135846
Martin130217
Switzerland126910
Warren115616
Union98511
Ohio80511
Unassigned0482

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