COLUMBUS, OH (AP) – Ohio paid off the US Treasury nearly $ 1.5 billion borrowed by the state to pay unemployment benefits to residents during the pandemic, Governor Mike Devine said Wednesday.
Refunds to the Treasury using funds allocated as part of the federal COVID-19 rescue package will prevent employers from facing future tax hikes to pay off the loan.
“I don’t want our employers to bear the burden of unemployment arrears caused by the pandemic,” Republican DeVine told a news conference with GOP Governor John Hasted and Ohio business leaders. “Without this additional tax burden, our employers can invest more money in their business and hire more employees.”
The repayment occurs just days before the September 6 deadline, when the federal government should have started charging 2.27% per annum on the debt.
During the coronavirus pandemic, the state paid out about $ 2.1 billion in overpayment for unemployment insurance. Overpayments due to fraud or error were included in this figure, according to the State Department of Employment and Family Services.
Copyright 2021. Associated Press… All rights reserved. This material may not be published, broadcast, rewritten or redistributed.