Projo 7 to 7 News Blog

By Business staff

PROVIDENCE, R.I. -- The Rhode Island Department of Labor said today it has been approved for a $75 million line of credit to replenish the state's unemployment insurance fund used to pay benefits to jobless workers.

The state said that on Monday, the balance of the state trust fund had reached $23.6 million, the low balance that triggered the state Department of Labor to request the line of credit to ensure payments to clients could continue without interruption.

The state's unemployment rate has hit 10.3 percent, prompting lawmakers on Tuesday to pass an emergency bill allowing the state Department of Labor and Training to recall its retirees, for a second time, to handle jobless claims.

The state paid out more than $38 million in unemployment benefits in February.

Governor Carcieri's administration said Friday that Rhode Island is the eleventh state to apply for such assistance.

Rhode Island borrowed nearly $130 million from the federal unemployment trust fund during an economic downturn from 1975 to 1980.

-- With reports from the Associated Press.

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 Tags  unemployment

Comments

RI is Home said:

Isn't amazing how the federal government has an unlimited amount of funds? We are all screwed, but our elected officials will let us die slowly so they get elected again....

Link | March 6, 2009 9:32 PM
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