State Makes $75 Million Unemployment Trust Fund Loan Payment Solvency on Track for Summer 2015
March 30, 2015
SC Department of Employment and Workforce
For Immediate Release
March 30, 2015
State Makes $75 Million Unemployment Trust Fund Loan Payment
Solvency on Track for Summer 2015
COLUMBIA—The SC Department of Employment and Workforce (DEW) today announced it made a $75 million early payment to the federal government towards the agency’s unemployment trust fund loan. The payment brings South Carolina’s loan balance to $120 million and saves the state approximately $1.3 million in interest.
“Today’s early payment, made possible by 63 consecutive months of employment growth in our state, is another reason to celebrate, and it motivates our entire team to keep the momentum going,” said Gov.Nikki R. Haley.
When the 2014 unemployment tax rate was set, the federal government estimated 1,968,209 South Carolinians were employed. As of December 2014, 2,069,190 people were employed in the state, leading to additional tax collections.
In addition, South Carolina paid approximately $80.7 million less in unemployment benefits between January 2014 and December 2014 compared to the same time frame in the previous year. “South Carolina experienced record high employment throughout 2014, as benefit payouts continue to decline monthly enabling this $75 million early payment to be possible,” said DEW Executive Director Cheryl M. Stanton. “The state continues to have strong economic growth and I am excited that the state will pay off this federal loan in the coming months.”
To date, South Carolina has repaid more than $857 million of the $977 million borrowed from the federal government.