ATLANTA — Ga. Dept. of Labor Unemployment Debt IM Channel 2 Action News has learned Georgia is out of money when it comes to paying unemployment benefits, and the state now owes nearly $500 million dollars to the federal government to cover the payments, a number that's growing every day.
The staggering numbers were obtained by Channel 2 political reporter Lori Geary, who was told by several state leaders the debt puts the state in a financial crisis.
State Sen.-elect Fran Millar told Geary the state owed the federal government $416 million dollars, money borrowed to cover unemployment benefits since the economic downturn.
Millar said that total grows to $1.1 billion by the end of 2013 if the state does not make changes to taxes or how it pays benefits.
"Most of your elected officials, certainly in the general assembly, I don't think have a clue about the magnitude of this obligation," said Millar.
"We need to be talking about fixing it; we need to be talking about fixing it right now."
The fixes aren't easy. If Georgia's current 10 percent unemployment rate doesn't improve then tax hikes for employers and benefit cuts for the unemployed must be on the table, according to Millar.
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Outgoing Labor Secretary Michael Thurmond told Geary there's no end in sight to the growing debt.
"Georgia's program for those who qualify, these individuals will continue to see benefits and unless we get the economy moving again, Georgia will continue to have an insolvent trust fund," said Thurmond.
"The academics say the recession is over. Bah humbug! The recession is not over. The recession or the impact of the recession continues to impact state budgets," added Thurmond.
Mike Carswell is one of a half-million Georgians out of work. He talked to Geary while waiting in line at a DeKalb County unemployment office.
"Here in Georgia, right now, it seems a little bleak," said Carswell.
"For every one job there's like 20 people interviewing for that one spot. It's just really hard now," added Carswell
To make matters worse, unless Congress acts, Georgia and other states will start accruing interest on the money they owe starting Jan. 1.
More than 30 other states owe the federal government unemployment insurance money totaling $40 billion.