2009-04-30 / Local & State

Pa. Keeps AllianceGradADslicks07.indd Borrowing To Prop Up Ailing Jobless Fund

HARRISBURG, Pa. (AP) - The Rendell administration is borrowing a growing amount of money from the federal government so the state can keep paying unemployment benefits to the rising number of jobless.

Department of Labor and Industry spokesman David Smith said Friday the state borrowed a total of $480 million as of this week from the federal government.

Pennsylvania's unemployment compensation fund is broke, which could trigger benefits cutbacks in January and higher costs on employers.

Officials say a closed-door meeting Friday of the state's Unemployment Compensation Advisory Council failed to produce an agreement on changes to keep the fund solvent.

The number of jobless claims is surging with the recession, with more than 370,000 receiving benefits at the end of last week.

Employers and wage earners both pay into the fund.

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