Businesses to pay for stimulus

Intro: Missouri employers are on the hook for some of the federal stimulus money Governor Jay Nixon has accepted.

Theo Keith has more from Jefferson City.

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The state government will soon offer unemployment benefits to Missourians who didn't previously qualify, such as those who find part-time work.

The change won't cost businesses extra money for the first year because the federal government is paying.

But state Chamber of Commerce Taxation Director Tracy King says businesses will pick up the tab once this federal money runs out.

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Description: You couldn't just cut them off once you've used up the money that the federal government is giving. They would be ongoing, very expensive changes, which would result in a tax increase on employers.

According to the state's Labor Department, Missouri's unemployment insurance fund will run dry Tuesday.

The state will borrow more than a quarter of a billion dollars over the next three months, money businesses will also pay back.

From the State Capitol, I'm Theo Keith.

Intro: Missouri's unemployment insurance fund will run dry Tuesday, but the state won't miss payments to those drawing unemployment.

Theo Keith has more from Jefferson City.

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The state is borrowing more than a quarter of a billion dollars from the federal government to keep paying unemployed Missourians.

According to Missouri's Labor Department, the state has requested a loan to cover the next three months.

But State Chamber of Commerce Taxation Director Tracy King predicts the fund will be insolvent for five years.

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Description: You've got more people on the unemployment rolls than we've seen in a long time. This is the hundred-year flood, and we haven't seen this kind of a recession in a long time.

King says the longer the fund is in the red, businesses will pay more federal taxes.

King said this means over the next five years, Missouri employers will spend more than $1 billion.

From the State Capitol, I'm Theo Keith.

Intro: The federal stimulus law includes provisions that will soon put money in the pockets of unemployed Missourians.

Theo Keith has more from Jefferson City.

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The state's Labor Department spokesperson Wanda Seeney says unemployed Missourians will receive an extra $25 a week starting March 3.

Seeney says the state now needs to determine how to hand out the additional money.

At the same time, Revenue Department spokesperson Ted Farnen says the federal government will not tax the first $2,400 of unemployment benefits this year.

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Description: So, obviously that would be some savings because, prior to that, unemployment benefits were taxable income.

Missouri's maximum weekly unemployment payment is $320.

The additional payments will stop at the end of the year.

From the State Capitol, I'm Theo Keith.