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The state barrowed 2.6 billion dollars to pay people out of work and now the bill has come due. The state has already repaid the feds a billion dollars, plus 56 million in interest. As Whitney Ray tells us, to get the rest of the money business taxes will go up and unemployment benefits will decrease.

As the economy continued its downward spiral in August of 2009, the state ran out of cash to keep up with unemployment claims. Uncle Sam opened his wallet and Florida grabbed 2.6 billion dollars to pay its unemployed. The loan was interest free until now.

The state paid off a billion of what it barrowed earlier this year and at the first of this month paid an additional 56 million dollars in interest.

A year from now another 63 million dollars in interest is due. The state plans to vanquish the debt sometime in 2013. But paying the bill won’t be easy. The Governor wants to do it without raising taxes.

“The biggest thing we can do is get people jobs, create an environment where people can get to work. I don’t want to do anything to raise the cost of doing business in the state,” said Governor Rick Scott.

But business taxes are already scheduled to more than double next year, going from an average of 72 dollars per employee to 155 dollars. Lawmakers are working to keep taxes low and keep benefits going to eligible jobseekers.

“Our goal is try create that good balance of an environment can flourish and employ our citizens. So we’ve done the best we can to create that framework,” said Representative Chris Dorworth.

Benefits are already being reduced and starting next year the number of weeks an unemployed Floridian can receive benefits will be reduced by at least three weeks.

Florida is not alone, 27 states collectively owe the federal government 38 billion dollars. One billon of that is interest. So far none have asked the feds to waive the interest charges.