06.17.2011 2

California Receives Stimulus Money To Pay For… Unemployment Checks

Remember when we were told that the “stimulus” would create jobs? Well, in California, $800 million will go to pay for unemployment insurance

Federal officials announced Wednesday that California will receive more than $800 million in funding to help the unemployed as the state struggles to deal with the economy and a huge budget hole.

The U.S. Department of Labor said it will immediately release the money under the American Recovery and Reinvestment Act. The state can use the funds to pay unemployment benefits, provide employment services or administer the state’s unemployment insurance program, the department said in a statement.

“The federal government made these funds available as an incentive for states to strengthen their safety net as our economy continues to recover,” Labor Secretary Hilda L. Solis said.

California was hard-hit by the recession and while the unemployment rate has dropped recently it remains well above the national average of around 9 percent. The most recent tally put the unemployment rate at 11.9 percent in April, down from a modern record of 12.6 percent reached in March 2010.

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