Missouri owes $380 million for unemployment
Jefferson City, MO – The state of Missouri owes the federal government $380 million, and the feds want their money. Or at least a plan for paying back the money.
The debt began piling up after the state's fund from which unemployment benefits are paid went dry about two years ago.
The state needs a repayment plan by Friday, otherwise the feds will impose a tax increase on Missouri businesses to recover the money.
Governor Blunt has until Friday to submit the state's proposal to the U.S Department of Labor. State Employment Security Director Katharine Barondeau says her division has drafted an application.
New York is the only state currently being penalized by the federal government because of its unemployment fund debt.