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Indiana on pace to deplete jobless benefits in September

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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.

Posted: Aug 7, 2020 3:45 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.

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 751242

Reported Deaths: 13795
CountyCasesDeaths
Marion1032931788
Lake556911009
Allen41692692
St. Joseph36990565
Hamilton36588417
Elkhart29398461
Tippecanoe22901226
Vanderburgh22556400
Porter19356325
Johnson18471389
Hendricks17682317
Clark13226195
Madison13149344
Vigo12614253
LaPorte12419221
Monroe12207176
Delaware10966198
Howard10321225
Kosciusko9630121
Hancock8576146
Bartholomew8169157
Warrick7860156
Floyd7811180
Grant7242179
Wayne7162201
Boone6966103
Morgan6761141
Dubois6218118
Marshall6209116
Cass6016110
Henry5900110
Dearborn589878
Noble581488
Jackson509076
Shelby501496
Lawrence4742122
Gibson444894
Clinton442355
Harrison441875
DeKalb439885
Montgomery438090
Whitley406543
Huntington402681
Steuben400159
Miami395269
Jasper388054
Knox375991
Putnam372960
Wabash361983
Ripley347170
Adams345555
Jefferson335886
White331953
Daviess3033100
Wells295281
Decatur289992
Greene286885
Fayette284864
Posey273835
LaGrange273072
Scott270156
Clay267148
Washington246036
Randolph244783
Jennings235349
Spencer234531
Starke228058
Fountain220948
Sullivan214643
Owen211858
Fulton202942
Jay200932
Carroll193620
Orange188255
Perry187237
Rush175926
Vermillion174844
Franklin170335
Tipton166246
Parke149416
Pike138234
Blackford136232
Pulaski120647
Newton113936
Brown104243
Crawford102516
Benton101714
Martin91715
Warren84015
Switzerland8148
Union72810
Ohio57911
Unassigned0420

Ohio Coronavirus Cases

Data is updated nightly.

Cases: 1108736

Reported Deaths: 20166
CountyCasesDeaths
Franklin1287201467
Cuyahoga1157922211
Hamilton813971250
Montgomery525481043
Summit484271001
Lucas43353820
Butler39013606
Stark33332929
Lorain25672505
Warren24591303
Mahoning22370603
Lake21207388
Clermont20117253
Delaware18852136
Licking16662222
Fairfield16574204
Trumbull16548482
Medina15610271
Greene15281248
Clark14237306
Wood13292200
Portage13251215
Allen11913239
Richland11605211
Miami10849225
Wayne9141223
Columbiana9032230
Muskingum8906135
Pickaway8663122
Tuscarawas8649250
Marion8642138
Erie8056165
Ashtabula7160179
Hancock6998132
Ross6944161
Geauga6838151
Scioto6534106
Belmont6157174
Union584549
Lawrence5731102
Jefferson5678158
Huron5546122
Sandusky5442126
Darke5420129
Seneca5348128
Washington5319109
Athens523960
Auglaize502187
Mercer487385
Shelby476895
Knox4571112
Madison444266
Ashland435797
Putnam4336103
Defiance432399
Fulton432074
Crawford4037110
Brown402461
Logan387677
Preble3855105
Clinton379166
Ottawa373681
Highland359665
Williams348278
Champaign344759
Guernsey324953
Jackson318254
Perry297350
Morrow291840
Fayette285450
Hardin275265
Henry273467
Holmes2701101
Coshocton269060
Van Wert247264
Adams243256
Pike242835
Gallia240650
Wyandot234556
Hocking220563
Carroll197348
Paulding176542
Meigs148440
Monroe136344
Noble136239
Harrison114138
Morgan109624
Vinton85517
Unassigned03
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