Nearly $650 million in bonds sold to help Colo. unemployment insurance fund
"This bond issue will reduce unemployment insurance costs to employers while simultaneously maintaining the level of benefits available to Colorado's unemployed workers," Gov. John Hickenlooper said in a statement. "Today's announcement is a good example of how pursuing efficiency and effectiveness in government can help create a more business-friendly environment."
Colorado employers pay into the state Unemployment Insurance Trust Fund, which has struggled for financial stability since the recession of 2002, causing employers to be hit with extra surcharges. The recession of 2008 worsened the problem, and the fund's negative balance reached an excess of $600 million.
The bond issue, which took place last week, totaled $640 million in proceeds. The bonds were sold through the Colorado Housing and Finance Authority in a sale made possible through the passage of legislation sponsored by Reps. Larry Liston and Daniel Pabon and Sen. Cheri Jahn.
The administration said the bonds will be repaid by businesses over time, and the costs to Colorado businesses will be significantly lower than if the fund were allowed to continue to run at a negative balance.
A fact sheet about the changes has been created by the state and is available at www.coloradoui.gov.
More breaking news...
Summit Cos. to build restaurant, entertainment venue near Ranch
The Business Report, competing against news organizations from Colorado,
Woodward's Illinois expansion larger than expected
A planned 300,