Free insurance costs a ton The Virginian-Pilot
If a tiny reptile with a cute accent advertised car insurance with no premiums until customers have an accident, there's a good chance that the bill would also be hand-delivered to the crash scene by a fire-breathing dragon.
Insurance policies don't work that way, of course. A new report by the National Employment Law Project, an advocacy group for jobless workers, reminds why.
Like 32 other states, Virginia has watched its unemployment benefit fund empty out during the recession. The commonwealth has already borrowed $332 million from the federal government and expects to need a total of $1.26 billion over the coming years to maintain its safety net for families struggling to survive layoffs and lost income.
None of that is unexpected. But it is an unpleasant reminder to the commonwealth about how inaction caused this predicament and what it will take to avoid a repetition.
Unemployment funds are essentially insurance programs. Businesses pay taxes into the fund, which is then available to provide temporary wages for workers who lose their jobs. The system helps employers and employees, provides a bare safety net and stabilizes the state's economy by preserving a minimal level of consumer spending.
