Texas May Borrow From Feds to Cover Jobless Benefits

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    NEWSLETTERS

    Texas wouldn't have to pay any interest on the $1.5 billion loan until January 2011.

    A state official says Texas will likely borrow $1.5 billion from the federal government to pay jobless benefits through December.

    It's unclear when state employers will have to pay a higher tax to repay the loan and build a required $863 million cushion in unemployment compensation trust fund.

    The Dallas Morning News reports the three-member Texas Workforce Commission on Tuesday sought an estimate of how much the state would need to borrow from the federal government by Dec. 31.

    The agency's chief financial officer, Randy Townsend, indicated the amount would be about $1.5 billion.

    The state would not have to pay interest on the federal loans until January 2011.