Lawmakers hope to refinance unemployment insurance loan

April 01, 2013

Arizona legislators want to refinance a federal loan that kept the state’s unemployment fund afloat during the recession. 

In 2010, Arizona took out a federal loan to keep its jobless fund solvent. If the state doesn’t pay the money back by the end of September, it’ll owe the feds an estimated $6 to $8 million in interest, and businesses in Arizona will have to pay a fee of $42 per employee.

The amendment to an omnibus bill, introduced by Senate President Andy Biggs, authorizes the Department of Economic Security to issue $200 million in bonds, essentially refinancing the loan. Though the amendment has bipartisan support, it’s unclear whether it will pass.

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