PHOENIX — The Arizona Department of Economic Security is expected to once again borrow money in order to keep its cash flow moving.
“We don’t anticipate any extra costs for employers. We don’t anticipate any issues on our benefits side and (for) claimants receiving benefits,” said Interim Deputy Director Mark Darmer. “This is just a financial mechanism we use to keep the program running as efficiently as possible.”
The state’s unemployment insurance trust, which pays out unemployment benefits to thousands of Arizonans, is set to be deficient by approximately $3.5 million by the first quarter of next year.
Nationwide, states were forced to borrow money to keep the system afloat during the recent recession, and because the economy has been slow in recovering, borrowing has continued since the mid-2000s.