Mobile, AL – Officials say Alabama is on track to meet a deadline to repay $283 million borrowed for unemployment benefits.
Alabama is among 31 states that owe a total of $40.32 billion to the federal government.
Industrial Relations Director Tom Surtees says the state began borrowing in September 2009. Last year, Alabama paid out $685 million in benefits, but only collected $212 million in taxes.
The state continued to borrow through late spring this year, when Surtees said quarterly employer tax payments brought the system back into balance. Alabama expects to pay $487 million in benefits this year while collecting $423.4 million.
Surtees says the state hasn't paid back any debt yet because the federal loans are interest-free until Jan. 1. The $283 million is due in November.
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