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Editorials

Difficult decisions awaiting fund for jobless

POSTED: January 7, 2010

During the past year, the state of Ohio has borrowed $1.7 billion from the federal government to keep its unemployment compensation program afloat. By the end of next year, just 12 months from now, the debt is expected to reach $3 billion. Not only are many Buckeye State men and women unable to pay their bills because they lack jobs, but their state can't pay the bills to provide them with assistance.

Ohio simply cannot continue to pile up debt without making some provision to pay it off. Yet Gov. Ted Strickland and leaders in the General Assembly have not been promoting a plan to do that.

At some point, even the federal government demands payment for loans. Ask anyone who owes Uncle Sam money for a student loan. But state leaders seem to believe they can continue putting the unemployment compensation shortfall on Washington's tab.

Clearly, the state's unemployment compensation system is broke, as well as broken. According to a published report, it has collected less money than it has paid out every year but one since 2001. We probably do not need to remind you that for most of that time, the economy was considered healthy and the drain on unemployment compensation funds was not overly great.

In fairness to officials of the state Unemployment Compensation Advisory Council, they have offered suggestions to balance the program's books. They have included limits on benefits as well as increases in amounts collected from businesses. Neither idea has been popular among the political class.

But something has to be done - and a solution cannot wait forever, or even for a few more years. Again: The state is expected to owe the federal government $3 billion by the end of next year. Strickland and legislators should begin addressing the problem.

 
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