Job Market

Political Road Map: Trump's budget presents new challenge to California's long suffering unemployment fund

Political Road Map: Trump's budget presents new challenge to California's long suffering unemployment fund

After years of the state being deep in debt to the federal government for a loan covering the unemployment benefits of millions of Californians, state government officials have been promising the system was well on its way to stability.

And then came President Trump’s federal budget plan, with new rules and penalties for states whose jobless benefits outpace available dollars.

To understand what might be coming, it’s important to see where we’ve been. Unemployment insurance (UI) offers a weekly stipend of up to $450 for most workers who lose their job. The payments, for a maximum of 26 weeks, are paid from a payroll tax charged to employers.

Not surprisingly,...

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