Centrism!

by Ryan Avent

As we wait to hear just how much the 20 “centrist” Senators have cut from the stimulus bill, it’s worth considering, as Brian noted, that one of the items that’s apparently on the chopping block is aid to state governments. As he says, “That’s county hospital staff and public transportation service and teachers–possibly gone.” While we ponder that, and ponder the nation’s shiny new 7.6% unemployment rate, we should also reflect on this:

Unemployment filings have soared so high in recent months that seven states have already emptied their unemployment-insurance trust funds, which were supposed to see them through recessionary periods. Another 11 states are in jeopardy of depleting reserves by year’s end, according to the National Conference of State Legislatures, which published a January report entitled “The Crisis in State Unemployment Trust Funds.” So far, states have borrowed more than $2.3 billion in emergency funds from the federal government, money they are required to pay back.

There is some designated assistance for unemployment benefits in the stimulus bill (we think!), but it’s almost certain to be insufficient. But hey, the Senate bill has more in tax cuts, so it all works out, right?