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November 9th, 2010
04:55 PM ET

Calif. borrowing $40 million/day for unemployment benefits

ALT TEXT

Unemployed people search for jobs in an employment office in the southern California town of El Centro. (PHOTO CREDIT: GETTY IMAGES)

FROM CNN's Jack Cafferty:

California is borrowing $40 million a day from the federal government to pay unemployment benefits.

That means California is borrowing $40 million a day from you and me to pay unemployment benefits.

The Los Angeles Times reports the state will have a $362 million bill for interest alone due on a total debt of $10 billion next fall.

Thanks to the recession and poor management, California is an economic disaster zone, with one in every eight workers unemployed. More than 1.2 million Californians have lost their jobs since the start of the recession, and they're staying out of work for longer periods of time.

Plus in 2001, state lawmakers nearly doubled unemployment benefit levels without raising taxes. That was smart.

The result of all this is that if California keeps borrowing from the federal government, employers could face a steep hike in their unemployment taxes.

California is not alone here. 32 states in total have been borrowing from the federal government to pay unemployment benefits. The total is $41 billion. Some of these states are asking the feds for a deferral on repaying the loan until the economy improves.

The solution to this is fundamental: either increase contributions or decrease benefits - or both. Want to bet neither one happens?

Here’s my question to you: Should California borrow $40 million a day from the federal government to pay unemployment benefits?

Interested to know which ones made it on air?

Joey in San Diego writes:
Are you really shocked, Jack? We are broke and yet the California politicians continue to spend like drunken sailors. Don't worry though, voters decided to keep Boxer and give tax-and-spend career politician Jerry Brown another shot at it. Taxes will be going up for those of us that actually pay them and the businesses that have an option to leave...will.

Paul writes:
While I support unemployment benefits and other social programs, there comes a time when you have to cut it off. Otherwise you are merely sustaining a fantasy, or an illusion of prosperity. The program should give people enough time to find other work or make preparation for lifestyle changes. But keeping it going in perpetuity merely delays the inevitable and puts an unneeded financial burden on everybody.

Rich in Texas writes:
I was born and raised in California. People need to realize that they have a real sense of entitlement out there. Kids are raised to believe everything should be perfectly equal even if some are not willing to put in the work. They keep electing the same people into office expecting things to magically take care of themselves. Until we stop baling them out, they will continue to operate this way.

Paul in Austin, Texas writes:
Why not give millions to California? Instead we give millions in aid to countries on the other side of the world who hate us anyway. I say help at home first.

Jeff in Minnesota writes:
Jack, You're damned if you do and damned if you don't. For most of the unemployed, it's not their fault. So we should just kick them to the curb and hope for the best? It may not be the best solution, but people have got to be able to live.

Ian writes:
Yes. The cost of the federal government's failure to enforce illegal immigration laws or protect the border ALONE should be enough to justify protecting our unemployed citizens here in California. California should be suing the federal government but it wouldn't be PC. California's legislature is filled with monkey's wearing clown makeup.

Dave writes:
California is going down the pot. If they legalized it, they would have made enough in taxes last week alone to cover that.

soundoff (118 Responses)
  1. Rick McDaniel

    With Brown at the helm.......complete and total bankruptcy.

    November 9, 2010 at 1:41 pm |
  2. Joanne

    To bankruptcy if they don't CUT spending, and become more reasonable in the giveaway programs ASAP !
    They are concerned in Ca about toys in Happy Meals, but they need to spend the time on taking care of their budget.
    American people won't stand for this much longer either..as there is an uproar beginning. You need to sleep in the bed YOU MADE.
    Joanne
    Mn

    November 9, 2010 at 1:47 pm |
  3. Conor in Chicago

    It's heading exactly where all of you Global Capitalists want it to go. You see, this is what happens when you destroy the middle class in the name of Globalization. You have millions of people out of work because everything was shipped overseas all so the rich could get wealthier, and all of you could feel like you did Jesus a favor buy voting for the guy who did it because he didn't like gay marriage. But I was an unAmerican Socialist for pointing it out because none of you can think-which why I am glad this country is destroying itself.

    November 9, 2010 at 1:52 pm |
  4. Rob in Brooklyn

    California better start creating some jobs. How can they borrow like that for unemployment ? Maybe they should stop giving illegals free services

    November 9, 2010 at 1:53 pm |
  5. Greg, Ontario

    The same place your country is headed bankruptcy.

    November 9, 2010 at 1:59 pm |
  6. Russ in PA

    How ludicrous: California borrowing more worthless money from the rest of us. Let them go bankrupt: how else you going to put a stop to this nonsense?

    November 9, 2010 at 2:02 pm |
  7. Rich McKinney, Texas

    I don't think that a state borrowing against it's potential future prosperity is a wise move. Unemployment benefits are paid for by taxes placed on people who are working and the businesses who employ these people. It isn't free money. Unemployment is a tax on the productive to pay for the unproductive and it is not smart to pay people not to work for an extended period of time. It removes the incentive to find gainful employment. If you compare America to Europe you can clearly see that America has a lower unemployment rate simply because the benefits run out faster in America then in Europe. Having unemployment benefits as a safety net is one thing. Making unemployment benefits a Hammock is quite another.

    November 9, 2010 at 2:03 pm |
  8. Adam Simi Valley, CA

    As a Californian, do us a favor. Let us fail. Do not feed the monster any more. It wasn't long ago we were paying people with IOU's and in our elections, we voted all the same bozos back who created this mess. We are broken, no one wants to fix it. They hope with a little scotch tape and glue they can patch things up until pennies rain from heaven and fix our deficits. Magical jobs will begin sprouting up everywhere. The reality is, California is the most toxic business environment on the planet. Only an idiot would open a business here. We need to fail and sort this out. No bailouts.

    November 9, 2010 at 2:17 pm |
  9. Mysterious, Chicago

    The better question would be is this: where would the unemployed people of California be if they WOULDN'T get their unemployment benefits? Since the Republicans made darn sure to screw everything up so badly that it is taking so much to turn things around, that would be a good starting point.

    November 9, 2010 at 2:19 pm |
  10. Larry from Georgetown, Tx

    The same place the rest of us are headed, into another major depression and this one will be very ugly, high crime, starvation and then we'll be a 3rd world country and survival will depend on defending ones property. God I feel sorry for my grandkids and only wish we had never heard the term outsourching jobs are good for the economy.

    November 9, 2010 at 2:24 pm |
  11. Steve, Clifton, VA

    Smaller Government, smaller payments to States seems like the right Tea party recipe doesn't it? We as a country have to get our act together. We can't have it both ways...i.e "Give me help when I want it and stay the heck away when I am healthy". Do we want Government in our lives or not is the question.

    November 9, 2010 at 2:26 pm |
  12. Arlene, Illinois

    As the Republicans have said in Congress " let those lazy people
    get off Unemployment and go look for a job"
    Well folks thats what you voted for in the next 2 years.
    Reap what you sow.

    November 9, 2010 at 2:27 pm |
  13. bob z fr ,pa.

    why should us citizens pay for calif after all the crooks stole the money

    November 9, 2010 at 2:31 pm |
  14. Dee in New Paris Ohio

    They still have unemployment benefits in California?

    Wow!

    Where is CA headed? Down the same tube the rest of the country is sliding down!

    However, what is the alternative? Our entire country is being run on borrowed money. And one of the reasons is that we have lost so many JOBS to other countries.

    In fact we borrow a lot from China, and China is one of the countries benefitting from our economic decline.

    So, where is California (and the entire nation) heading? I'm not positive, but I think we all need to learn Chinese to get there.

    November 9, 2010 at 2:37 pm |
  15. JENNA

    Where is California headed if it's borrowing $40 million a day from the federal government to pay unemployment benefits?

    Where do you think Jack? The same place the federal government is going as it borrows all that money for unemployment, etc. from the Chinese and Mexico.

    Jenna
    Roseville CA

    November 9, 2010 at 2:43 pm |
  16. David Alexandria, VA

    Chapter 11 and foreclosure, just like the rest of the short-sighted citizenry which bet the farm on constantly escalating housing prices. Disney Land should open a new venue - Athens World because California is our own version of Greece. They have spent so much money on entitlement programs and pension plans that they can't possibly make the payments. California has such bounty and yet has squandered it on short-term narcisistic politics and special-interest patronage. It took Greece 4,000 years to get there, California, trend-setter that it is, has done it in a little under 300.

    November 9, 2010 at 2:43 pm |
  17. Sandra in Temecula, CA

    Its business as usual in California and our recent elections did nothing to change that. The vote went to support tax and spend liberals Barbara Boxer and Jerry Brown who contributed to putting us into this bankrupt situation and their only solution is to raise taxes yet again. Our state is anti business and that isn't going to change with Brown's leadership. The rest of the country should be paying attention to our situation, it is a clear indication of what can and will happen to the rest of the country if the spending and over flow of entitlements are not dealt with.

    November 9, 2010 at 2:50 pm |
  18. Tina Tx

    You better be asking where the rest of the country is heading because they say as California goes so does the rest of the country, right? I am just glad I am not the gov that has to fix their mess.

    November 9, 2010 at 2:51 pm |
  19. southerncousin

    Defintion of insanity isn't it. Keep electing them democrat liberals.

    November 9, 2010 at 2:54 pm |
  20. steve99er-nyc

    Please pass tier 5 me and my family will be force to move out in 1month and the winter is here there are no jobss I'm from new york city god bless 99ers and familys

    November 9, 2010 at 2:59 pm |
  21. Steve - Chula Vista, CA

    This should come as no surprise to anyone. California is a liberal state with too much union control. We are being bankrupt by too many social programs and entitlements to those who are here legally and illegally. With unemployment benefits being treated like Welfare (indefinite) and jobs being driven out of this state by liberals using businesses as ATM machines for their massive spending this is the end result. The elections last week did nothing to change the course of California, the votes on other propositions were anti business and pro raising taxes yet again, hardly a solution to the real problem, but that's the mindset of California.

    November 9, 2010 at 3:00 pm |
  22. David from Herndon, VA

    That's not the problem, Jack. All of that money shuttles right back into the economy since unemployed folks aren't putting it in a piggy bank.

    The better question is where's California headed if you take $40M out of its economy every day?

    November 9, 2010 at 3:06 pm |
  23. Joey in San Diego, CA

    Are you really shocked Jack? We are broke and yet the California politicians continue to spend like drunken sailors. Don't worry though, voters decided to keep Boxer and give tax and spend career politician Jerry Brown another shot at it. Taxes will be going up for those of us that actually pay them and the businesses that have an option to leave...will. We won't be doing any hiring anytime soon, the cost per employee is outrageous and it's only going to get worse.

    November 9, 2010 at 3:11 pm |
  24. Weldon from Canada

    Directly to China ! ! !

    November 9, 2010 at 3:18 pm |
  25. Bizz Quarryville Pennsylvania

    They are swirling around the toilet waiting to go were all crap goes. Legalizing marijuana and taxing it is starting to look pretty good. It would free up police take money from the drug cartels and help stop a state from going down that crapper.

    November 9, 2010 at 3:25 pm |
  26. Janne from NC

    A better idea would be to borow it directly from China and cut out the middle man.

    November 9, 2010 at 3:28 pm |
  27. Peg from N.Y.

    No. California has to be responsible for California. The federal government would be incredibly irresponsible to loan the money. Another reason why marijuana should have been legalized.

    November 9, 2010 at 3:29 pm |
  28. Al

    Your question needs a context. If the Federal loan is a step in a viable plan to restore high employment levels, of course. We would get value for the investment. If not, then our "leaders" need to find a plan that does.

    November 9, 2010 at 3:35 pm |
  29. MNResident

    California can't control their government spending, enacts business and job killing laws in the name of issues like the "environment", court orders subsidies to law breaking aliens who sneak into the country, and now wants the rest of the country to pay for it? NO WAY!! You made your bed, California. Now wallow in the filth that is that bed....

    November 9, 2010 at 3:41 pm |
  30. Ed from California

    The unemployed in Ca and in the Nation better get used to the fact. That the government extensions to unemployment benefits are going to come to an end, with Cry-Baby Johnnie in charge. If he can sweep a bar. Our unemployed can pick our fruit and veggies or wash our cars.

    This election was about gaining meaningful jobs. The voting public said the democrats don't get it. I disagree with that. The outsourcing of our jobs have been going on since 1996. And it's going to be a huge fight with the communist Chinese who have these jobs, to try and get them back!

    The Democrats have introduced bills to get the jobs back. By cutting the tax loopholes that our corporations get for sending our jobs overseas. The Republicans are not willing to help pass these important bills.

    And what, you vote more of them in. Just remember this....... I don't want grounds in my coffee when I drive through the drive-up window.

    November 9, 2010 at 3:45 pm |
  31. Rich - TX

    I was born and raised in California. People need to realize that they have a real sense of entitlement out there. Kids are raised to believe everything should be perfectly equal even if some are not willing to put in the work. They keep electing the same people into office expecting things to magically take care of themselves. Until we stop baling them out they will continue to operate this way.

    November 9, 2010 at 3:51 pm |
  32. David in Raleigh, NC

    It's time for our government to reign in entitlements beginning with excessively bloated government pensions.

    Borrowing money to pay for entitlements is irresponsible.

    November 9, 2010 at 4:05 pm |
  33. Mark, OKC

    What is California's alternative, Jack?....let tens of thousands of people go live in the streets with their kids, the dog and grandma?

    November 9, 2010 at 4:13 pm |
  34. Lori - PA

    Jack,

    There's no good answer to that question. If California stops borrowing money from the federal government, you'll have people screaming about the unemployment insurance that had been taken out of their pay check. If California continues to borrow they money, it increases their, as well as the federal government's, budget deficit. The only way to end the vicious cycle is to create permanent jobs, something I haven't seen happen. I was laid-off from my last job over two years ago, and I still haven't been able to get a job.

    November 9, 2010 at 4:20 pm |
  35. Paul Austin,Texas

    Why not give millions to California. Instead we give millions in aid to other countries on the other side of the world who hate us anyway. I say help at home first.

    November 9, 2010 at 4:20 pm |
  36. Dave, Orlando, FL

    It should not borrow the money, but it should sue the financial institutions that caused this economic problem and the corporations that outsourced all our jobs. These bums should have to fund the unemployment coffers until they wise up, straighten out and fly right. If they were made to pay for their greed, they might not be so greedy the next time. But that makes too much sense and is way too close to justice for this world.

    November 9, 2010 at 4:23 pm |
  37. Mike in St. Paul

    No need. The new Congress will have the situation solved by January 4. Evidently there is a connection between tax breaks to corporations for shipping jobs overseas and companies hiring domestically to fill positions they do not need but will have that extra money.

    November 9, 2010 at 4:30 pm |
  38. Jeff In Minnesota

    Jack. You're damned if you do and damned if you don't. For most of the unemployed, it's not their fault. So we should just kick them to the curb and hope for the best? It may not be the best solution, but people have got to be able to live. That is what we promised them after all.

    November 9, 2010 at 4:33 pm |
  39. Greg in Mechanicsburg

    The alternative is too scary to consider.

    November 9, 2010 at 4:34 pm |
  40. Paul New Port Richey, Fl

    Too bad California didn't pass the marijuana bill. At least they would have a reason for acting like they are totally stoned.

    November 9, 2010 at 4:34 pm |
  41. Allen in Hartwell GA

    NO! It's time California's elected leaders did some leading! There is a lot of tax money that the state could bring in if only they had the guts to act. Look at all the money in the state, and tell me why the state is broke! The state leaders are more worried about getting re-elected than about the good of the state. Of course this disease is common among most elected officials at all levels.
    Public office should be like juror duty – your name gets pulled and you go serve.
    Allen
    Hartwell GA

    November 9, 2010 at 4:35 pm |
  42. Gary H. Boyd

    Jack, Califiornia - the once was land of milk and honey is now a wasteland of sour grapes and vinegar. It's so deeply in debt anyone thinking of moving there would be out of their mind - the hell with the nice weather, beaches and movie stars - it's an fiscal abomination.

    Gary in Scottsdale, AZ

    November 9, 2010 at 4:37 pm |
  43. Paul P.

    While I support Unemployment Benefits and other social programs, there comes a time when you have to cut it off. Otherwise you are merely sustaining a fantasy, or an illusion of prosperity. The program should give people enough time to find other work or make preparation for lifestyle changes. But keeping it going in perpetuity merely delays the inevitable and puts an unneeded financial burden on everybody.

    November 9, 2010 at 4:41 pm |
  44. Viv from NY

    We could instead ask the wealthiest Americans in the top 2% to give up their Bush tax cuts to help pay for unemployment – hows that idea the rich can think of it as a donation to charity.

    November 9, 2010 at 4:41 pm |
  45. Ed

    You say they borrow this money from you and me but who is making all this money on the interest? That's not you and me.

    November 9, 2010 at 4:43 pm |
  46. Luci

    Sure, the party of no thinks nothing of giving billons of dollars of tax cuts to the wealthy. Why not give it to the unemployed that don't have a bank roll sitting offshore?

    November 9, 2010 at 4:44 pm |
  47. Ken

    That's a tough one Jack.
    I have this notion the liberals have understood what can happen when the overwhelming numbers of poor and destitute become desperate enough to take away from those who have. We may be a long way from that happening, but a check in the mail for the economically desperate may be the buffer to prevent that. What is scary here Jack, is the number of unemployed growing given the reluctance of the Congress to allocate more money for the jobless. We are broke, so what are our options?

    November 9, 2010 at 4:49 pm |
  48. Kevin, Madison AL

    California has been screwed up for years. You want proof that a liberal agenda does not work there you have it. Look at how they pass their budgets, and their tax structure. That state needs to get their house in order but since they want to take care of everyone including trees, plants, pets that's not going too happen.

    November 9, 2010 at 4:50 pm |
  49. Ken in Maryland

    California has a law that no tax can be raised without an election referendum. Nobody wants to vote for a tax increase, yet everybody wants bigger benefits. Now California's broke. Go figure!

    November 9, 2010 at 5:00 pm |
  50. Lance, Ridgecrest, Ca

    Jack, what California should do is quit sucking up to the unions that are ruling this state. They won't do it, and that guarantees that California is headed for default, because they think the feds are going to bail them out of the hole even as they dig it ever deeper. With the election of another tax/spend liberal like Jerry Brown, and the continuation of a liberal legislature, this state has sealed it's fate! All that is in question is when the default comes. I'm betting it comes sooner rather than later

    November 9, 2010 at 5:12 pm |
  51. Carl

    Jack,
    My opinion is this, if you can waste tax dollars on corrupt insurance companies, like A.I.G, banks, etc. Making sure these scum bag CEO's get their bonus checks,Then you can help the working honest legal citizens of our once great country until it hurts, or until their is nothing left, just as long as no more money goes to these bail outs.

    November 9, 2010 at 5:19 pm |
  52. Joe CE

    Californa ps borrowing for many less essential expenditures. Of course, we should require that they stop benefits to illegals – they would substantially reduce the amount needed. Benefits to illegfals simply subsdize explotative employeers and engourage the influx of mure illegals.

    November 9, 2010 at 5:20 pm |
  53. Ralph Spyer

    California should borrow what ever it takes, what do you think people do with that money? They buy food and pay taxes on that food. They pay there rent, they buy clothes for there children, you got the picture. Now if the Federal Government has one trillion that 1,000,000,000,000,000,000 dollars for two wars we started they can find money for unemployment benefits. Oh by the way once these wars are over, the cost does not stop we have pay the Veterans health care ect ,ect

    November 9, 2010 at 5:20 pm |
  54. Simon, FL

    The Fed will be bailing out California for a lot more things then that. Wait until they can't pay all those state worker pensions. That burden will go to the American tax payer.

    November 9, 2010 at 5:27 pm |
  55. Michael Armstrong Sr. Tx.

    Hell no it's time they follow Texas lead and go threw the work force commission and loose there food stamps also unless they follow the rules of finding a job no job search school then no food stamps or unemployment check's there's jobs out there there just living off the government .

    November 9, 2010 at 5:33 pm |
  56. Rick Medina,OH

    Jack,

    This is another example of budget and tax policies that have run amok. Unemployment taxes only apply to wages, and to only a small fraction of wages. But, everyone - wage earner or not - benefits from full employment and suffers when unemployment rates are high. Wouldn't it make better sense to identify all a state's obligations and tax incomes (regardless of source) to cover them?

    Rick, Medina, OH

    November 9, 2010 at 5:35 pm |
  57. Kathie

    Unemployment would probably be down if there was less catering to the illegal aliens and corporate America who hires them, if there would be no more outsourcing of our jobs and outsourced jobs brought back to the USA and if congress actually represented we, the taxpayer, not their own agenda/special interests/lobbyists.

    November 9, 2010 at 5:35 pm |
  58. John from San Antonio

    If we can spend a trillion dollars on wars to line the pockets of corporate executives we can pay this pitance to the people who work and support this nation.

    November 9, 2010 at 5:37 pm |
  59. frankie

    Unless America is to become a nation where people are left to starve or die of disease out on the street, we must take care of each other. And if the money doesn't come from the states it will come from the national government and vice-versa. If it isn't called taxes it will be called health insurance premiums and vice-versa. To me, that's what is wrong with ideologies like the Tea Party, they do not admit the existence of reality.

    November 9, 2010 at 5:37 pm |
  60. tom w.

    california, along with the other 31 states, need to bit the bullet and get their houses in order. you, nor i, can postpone payments without severe penalties, government is just a bigger "household". california, in particular, irritates me. they pass all these "measures" which cost a fortune to implement, then pass the cost on to everyone else through the federal government by borrowing with no intention of paying back!

    let 'em rot! i need the tax break.

    November 9, 2010 at 5:38 pm |
  61. Bob - Eli Somalia

    Simple answer?? No.

    November 9, 2010 at 5:43 pm |
  62. Sickandtired

    If the givernment has that much EXTRA Monies ( and I mean this loosely ) why in the HECK can they not create Jobs. For those who REALLY need the Help finding jobs with a means to support their familes and not trying to live Beyond their means I have no Problem with this to a certain degree. But for the FREELOADING lazy bums who feel that the govenrment ( or should I say Joe and Jane Public including myself ) who work our Butts off and pay taxes so that they can have a EASY way to go I say HELL NO !!!!!

    November 9, 2010 at 5:50 pm |
  63. Brian, Baton Rouge

    I'd like to see a Constitutional amendment that would guarantee that every state gets back at least 85 cents in Federal spending for every dollar it sends to Washington.

    If California taxes weren't supporting Alaska, Alabama, Mississippi, etc., which get far more federal spending than they pay in taxes, California would have the money to take care of this on their own.

    November 9, 2010 at 5:59 pm |
  64. steve - virginia beach

    No. Their indebetness is due to attracting tax-guzzling illegal aliens and other fiscal irresponsibility. California's spending habits are a state issue and California dug itself into this hole. What about all these wealthy celebrities who supported redistribution of wealth candidates? You get what you vote for and it's time to tell them and other Californians to belly up to the bar and pay their tab.

    November 9, 2010 at 6:03 pm |
  65. Kevin in CA

    No problem! The US is borrowing it from China.

    November 9, 2010 at 6:07 pm |
  66. Kevin in CA

    No big deal. It'll all get wiped out when California defaults.

    November 9, 2010 at 6:10 pm |
  67. Remo, from beautiful downtown Pflugerville Texas

    NO! Simple enough for you.

    November 9, 2010 at 6:11 pm |
  68. amanda smith

    Stop the Waste and Fraud Now. CUT the Unemployment benefits and do not allow States to borrow from the Federal Government. Make each state pay for their own Unemployment Benefits by Cutting Spending from other programs or raising their own State taxes.

    November 9, 2010 at 6:12 pm |
  69. Francine USA

    No, they should learn from their mistakes...That's what happens when you elect a phony actor/Republican for Governor...If you are dumb enough as a majority to elect this idiot, then you must learn to deal with the consequences. For every action, there is a reaction...

    November 9, 2010 at 6:12 pm |
  70. Bill O'Malley

    Extending unemployment benefits is one of the best ways to stimulate the economy. We bailed out the bankers and hedgefund managers who actually caused the problem,why not help those innocent people who suffered the most.

    November 9, 2010 at 6:13 pm |
  71. Gary C.

    Why doesn't the $40 mil / day go to CREATING jobs in California?
    vs. handing it out daily?

    Give em a fish, feeds em for a day...
    Teach em to fish, feeds em for life.

    November 9, 2010 at 6:13 pm |
  72. Arnold MI

    The federal government should seize the paychecks, bonuses, and assets of the crooked bankers who got us into this financial mess with their adjustable mortgages and derivatives and use the money to fund the unemployment extensions for the people who lost their jobs because of them. Why are we rewarding the gangsters while we penalize the victims?

    November 9, 2010 at 6:13 pm |
  73. Joe M.

    Nobody complains when California companies and workers drive the US economy ahead of most nations and invent the industries of the future.

    November 9, 2010 at 6:13 pm |
  74. Butch

    People gotta eat, Jack.

    November 9, 2010 at 6:13 pm |
  75. Ken

    Absolutely not. It's time that states bare the responsibility of their actions. This is why CA (and NY) continue to act irresponsibly.

    November 9, 2010 at 6:13 pm |
  76. Claire - Melbourne FL

    What would you have them do, Jack? Stop paying these people and have them sleep in the streets with their kids and or line up in food lines at the local church or whatever?

    Maybe all those "people" (corporations) could donate all the money they pay-off the politicians with and help the poor and out of work middle class. After all they out-sourced our American jobs and created this debacle.

    November 9, 2010 at 6:14 pm |
  77. Susan Grey

    No, Jack, they should borrow it directly from China. Why give the middle man any additional interest?

    November 9, 2010 at 6:14 pm |
  78. honest John in Vermont

    California has so many problems that need to be properly addressed that the state needs a "total makeover" top to bottom. They surely lead the nation in illegal aliens and the problems begin there. 30 years ago California didn't have all these problems.

    November 9, 2010 at 6:14 pm |
  79. John Ely

    Absolutely not! However, if California residents wanted to rescue their state they would not have voted Brown and Boxer in. Now CA will get even further in debt because growth in entitlements will expand.

    November 9, 2010 at 6:14 pm |
  80. Kevin in Virginia

    Jack, I don't think taxpayers outside California should be paying for their mess. Why not have the outgoing Governor cough up a few bucks; after all, if he thinks that smoking a joint isn't going to get you in trouble on the left coast then why not spend some his personal wealth to sort out a problem created on his watch.

    Kevin
    Ladysmith, Virginia

    November 9, 2010 at 6:15 pm |
  81. Chuck Bebee from Minnesota

    Jack, If California reduces unemployement benifets they'll be borrowing 40 million a day to pay for welfare. Maybe our Government should tax the hell out of the companies that sent all of the jobs over seas to pay for unemployement, but that would make too much sence!

    November 9, 2010 at 6:15 pm |
  82. Joseph Hunter

    that has got to be the dumbest thing that California has ever done. Instead of borrowing from the federal government, they should lower taxes and allow busness to recuperate. At this rate California is set to become the poorest in the nation. The only thing I want my taxes to be in is the governments hands, and not the hands of California

    November 9, 2010 at 6:15 pm |
  83. Rich McKinney, Texas

    If California does not get it's illegal alien situation under control then this unemployment benefit thing will not be temporary it will become permanent. Instead of using know methods of funding like allowing drilling off the coast they would rather borrow money from the Federal government that they can never pay back. Well either that or wait another year and try and legalize marijuana again. Their options are waning fast.

    November 9, 2010 at 6:15 pm |
  84. Alan

    Jack, Hell no, California should not be allowed to borrow $40 mill per day to pay for thier unemployment benefits. They should be made to pay for their own damn bills, we are having enough trouble paying for our own. California should be held accountable and forced to face up to the years of mismanagement and failed policies.

    Alan
    Virginia

    November 9, 2010 at 6:15 pm |
  85. Ian Goddi

    Yes. The cost of the federal government's failure to enforce illegal immigration laws or protect the border ALONE should be enough to justify protecting our unemployed citizens here in California. California should be suing the federal government but it wouldn't be PC. California's legislature is filled with monkey's wearing clown makeup.

    November 9, 2010 at 6:16 pm |
  86. Michael Armstrong Sr. Tx.

    In Texas if you dont go threw job search school then you loose your food stamps this should apply to unemployment check's also people with children are different but those that dont have kids have no excuse the work force commission needs to follow Texas lead .

    November 9, 2010 at 6:16 pm |
  87. H. Hill

    We should remember that unemployment funds are almost immediately re-injected back into the economy through payment for goods and services. This has a positive effect on the local and national economy, so it makes sense to continue providing unemployment benefits. The trickle down effect will result in more employment and unless our economic condition experiences a severe downturn, it's likely that the situation will equalize itself. To raise business contributions to unemployment, would negate the benefit of the original funds.

    November 9, 2010 at 6:16 pm |
  88. Jim

    Californians that are unemployment contributed to a fund that was to cover them in these times. Unfortunately, the morons that work for the California government couldn't properly administer a petty cash fund. As such, the fund is now in the read. Taxpayers are being burdened to cover all the pensions for these retired employees that worked on this fund. If you cut these benefits, lets cut the benefits to these incompetent state employees as well.

    November 9, 2010 at 6:17 pm |
  89. Pat

    Jack, I have a problem with the way you worded that question. Why didn't you ask, " Should the federal government make loans to the states for unemployment benefits?" Why single out one state? The federal government can't take a benefit away from one state that it gives to others. Isn't this just a way of pitting one state against another?

    November 9, 2010 at 6:17 pm |
  90. Russ - Florida

    No, they should not. But who can say "no"? From the federal government to the average Joe, the current American fiscal policy seems to be "borrow and spend now, let tomorrow's generation fend for themselves." Sad.

    November 9, 2010 at 6:17 pm |
  91. Ginny

    Maybe the question should be, how much money is being used to rebuild Iraq and Afghanistan, and employ those folks?

    November 9, 2010 at 6:17 pm |
  92. Nate

    Jack, California is a US state too so yes we must help them in their time of need. The moment we turn our backs on our own is the moment we fail as a nation and a people. It is very important, though, that California takes steps to fix this problem.

    November 9, 2010 at 6:18 pm |
  93. Brett

    It is time to cap Unemployment insurance and benefits. This issue is based in the corroding effects of entitlement and populism. If support is not so readily available, perhaps Americans will save accordingly in fear of their survival. I call back to Theodore Roosevelt's, "The Strenuous Life." The Values of self reliance are lost on the post baby boomer society. It is unfortunate that we are amidst a recession; but our for-bearers dealt with much more, and survived. Why are my fellow citizens not ashamed of taking from the government.

    November 9, 2010 at 6:18 pm |
  94. Tim Blackmore

    See this is what happens when you vote down the Pot resolution.

    November 9, 2010 at 6:18 pm |
  95. Les Merz

    Grandpa always said that it was never a good idea to "borrow from Peter to pay Paul." Grandpa was a pretty smart fella!

    November 9, 2010 at 6:19 pm |
  96. Ginny

    The better question: How much are we taxpayers (including the unemployed who were paying taxes) paying to rebuild Iraq and Afghanistan, and employing their people?

    November 9, 2010 at 6:19 pm |
  97. Jeff - Illinois

    They have no other option, CA is broke just like my home state of IL. Let them borrow but tighten eligibility!

    November 9, 2010 at 6:20 pm |
  98. Ray

    No they shouldn't be borrowing the Federal Government! Have them borrow it from all the rich movie and sports star there in Cali.
    Ray

    WV

    November 9, 2010 at 6:21 pm |
  99. Julie

    NO!!! This debt could eventually bankrupt our great nation!

    November 9, 2010 at 6:21 pm |
  100. Ginny

    Many of the unemployed paid taxes longer than the wipper snappers who are treating them like scum.

    November 9, 2010 at 6:21 pm |
  101. Flora

    Hi, Jack. I just don't think that whether human beings should live or die
    should be left up to a little piece of paper called a dollar Bill. That
    little piece of paper has caused human beings to treat each other like
    savages dating back to ancient history.

    Begone with it!, Jack!. Get rid of this little instrument of evil and destruction!

    Love, Flo.

    November 9, 2010 at 6:21 pm |
  102. Don Marlin

    Par for the Course – California has bankrupt itself with its liberal programs and now it wants to help bankrupt the entire country. Here’s an idea. Stop the unemployment payments in California and then the out of work individuals will hop on a bus for $99 and go to North Dakota where there are thousands of jobs and lots of cheap housing options. How is that for a no brainer… Duh!!

    November 9, 2010 at 6:21 pm |
  103. Warren Hohmann

    Dear Jack:
    Before everyone pushes California into the Pacific, please consider the gross federal tax revenues collected from the State. In 2007 alone the IRS collected a total of $313,998,874,000 from individuals and from businesses. Everyone likes to lampoon California, yet it is one of the largest economies on the planet. We have big financial problems here, but we will fix them.
    Warren
    West Hollywood

    November 9, 2010 at 6:22 pm |
  104. JackieinDallas

    God, there really IS no good answer, Jack. I don't want to furnish unemployment for Californians when I couldn't even get them in Texas for myself for several months! Leaving them without basic necessities isn't smart - it won't look good to the rest of the country and the world if we have massive starvation and starvation deaths in California. What we need to do is use some of those stimulus funds to create public works projects so we are at least getting SOME value for our money! Then they can at least feed themselves and their children, and be productive until those "trickle-down" dollars create the jobs the Republicans are promising!

    November 9, 2010 at 6:22 pm |
  105. Claudia, Houston, Tx

    Why not just call it a gift to California knowing they can't pay it back and without jobs that's exactly what it is, a gift.

    November 9, 2010 at 6:24 pm |
  106. Gary C.

    The unemployment rate is always spiked higher by the people who choose not to pursue a job once on the system. Free money for staying at home with your children works for America at this point.
    We as people have always had to work to death for very little compensation. Now with the bad economy to blame, we can ride the free pony with sympathy (and endless extensions).
    Why go get a job thast pays the same or less then unemployment benefits, Wic, Food stamps, and free clinic health care?

    November 9, 2010 at 6:25 pm |
  107. Vince, Laramie WS

    Why don't they just borrow it directly from China and cut out the middleman? That's where the federal government gets the money from

    November 9, 2010 at 6:25 pm |
  108. Larry from Georgetown, Tx

    Let's see, California borrows money from us that we don't have and we borrow money from China with no way to pay for it. Sounds like the new America to me, broke and on the verge of bankrupt.

    November 9, 2010 at 6:26 pm |
  109. Flora

    Hi, Jack. I just don't think that whether human beings should live or die
    should be left up to a little piece of paper called a dollar Bill. That
    little piece of paper has caused human beings to treat each other like
    savages dating back to ancient history.

    Begone with it!, Jack!. Get rid of this little instrument of evil and destruction!

    Love, Flo.

    November 9, 2010 at 6:28 pm |
  110. Craig

    The federal government is already in debt $10 trillion, what's another $10 billion.

    Oregon, WI

    November 9, 2010 at 6:29 pm |
  111. Bob in Kansas City

    Ca. should overhaul their state welfare and pension system...retiring with a six figure amount is obscene, welfare for illegals should be stopped also....I lived in San Francisco for 45 years and toward the end the Board of Supervisors became top heavy with progressives who never saw a tax increase they didn't like...never said no to anyone or nonprofit group the came to city hat in hand or with a proposal to "help" the disadvantaged....

    November 9, 2010 at 6:30 pm |
  112. Arie K

    NO!!! Let Calif declare bankruptcy. Then the Calif gov't. can renegotiate their Union contracts. Let gov't officials forego ridiculous pay and benefits, stop catering to illegal aliens – THEY ARE NOT UNDOCUMENTED RESIDENTS. Calif has to become responsible and pay for mistakes. Maybe after a dose of reality the Boxers and Pelosis of Calif will understand that you cannot just turnon the money printing press without causing harm down the road. WELCOME TO REALITY CALIF.

    November 9, 2010 at 6:32 pm |
  113. Karen

    Since the Government approved for their jobs to go overseas, yes I believe the Government should pay their unemployment.

    November 9, 2010 at 6:33 pm |
  114. observerU2

    Yes, of course. You'll need to keep these people fed, clothed, and housed. If you let your kingdom go to crap, you still have to feed the serfs. Keep the people minimally happy or lose your kingdom.

    We already had enough lies. Just do your job.

    November 9, 2010 at 6:38 pm |
  115. B Herns

    Absolutely yes, let's get real, we all know that being on unemployment is not voluntary in this situation. Many of the Californians that are unemployed are and have been actively looking for employment, many are educated/skilled, many have families, but all will suffer from career disruption and no doubt ruined credit. That means they will have to work twice as hard repairing it after this economic storm passes. 41 billion in comparison to 789 billion to help companies out that did not hire seems to be a more than fair arrangement.

    November 9, 2010 at 6:39 pm |
  116. Ted

    California .......NO........

    November 9, 2010 at 6:41 pm |
  117. Floyd

    Yes Jack. But only for those who didn't vote for the Republicans.

    November 9, 2010 at 6:41 pm |
  118. steve - virginia beach

    No way. A state's fiscal condition is the result of who it's citizens elect. California is a bad credit risk and recent election results show that fiscal responsibility isn't even on their radar. My home state elects fiscally responsible folks who balance our budget and fire those who don't want to. Californians can do the same. I might change my mind when Californians show that they want to be part of the solution but not until then.

    November 9, 2010 at 6:42 pm |