![\"\"](\"http:\/\/www.jsharf.com\/images\/UnemploymentInsuranceFund.gif\")
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The “Claims Paid” is a rolling 12-month total, as are the contributions.\u00a0 Well, here’s that graph now:<\/p>\n
Colorado Unemployment Insurance Fund<\/h2>\n
![\"\"](\"http:\/\/www.jsharf.com\/images\/UnemploymentInsuranceUpdate.jpg\")
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As you can see, the federal “aid” didn’t arrest the decline, it didn’t even hide the decline.\u00a0 At the beginning of 2010, Colorado’s bank balance hit $0.00, went past that, and had stayed there ever since.\u00a0 That $127 million that was so valuable and necessary funded the system for about 5 1\/2 weeks at the peak of claims, about 8 weeks now.<\/p>\n
These changes weren’t just an extension of benefits.\u00a0 Those extensions were supposed to be picked up by the feds.\u00a0 No, the $127 MM was in return for structural changes designed to permanently increase eligibility<\/a>.\u00a0 Part of the justification for the increase was Mark Zandi’s claim that unemployment insurance payments had one of the highest multipliers of all forms of intervention.\u00a0 But it’s been pointed out that Zandi never explained how he got to that number, and the models used have never been subjected to outside scrutiny.\u00a0 Moody’s is no piker, but if policymakers are going to use their results, their models need to be subject to the same scrutiny that we give to global warming data.\u00a0 Cough.<\/p>\n The business contribution line, you’ll notice, has been rising.\u00a0 Well, that’s not because so many more people are employed now in Colorado than used to be.\u00a0 It’s because every May, CDLE is allowed to levy additional assessments on business when the fund falls below a certain level.\u00a0 Given that levels are those for a reservoir in Death Valley, the fund right now will meet any insolvency test you care to invent.<\/p>\n So now, when the federal government begins charging Colorado interest for the money loaned for the further<\/em> benefits extensions, and when levels remain elevated at least in part because the terms for qualifying are more generous, Colorado is back asking (in the sense that the Stasi “asked” you not to make that joke, please) for even more money from businesses.<\/p>\n Ironically, the House sponsor of this financial wizardry was the man who now wants you to send him to Washington for more of the same – Rep. Sal Pace.\u00a0 Someone from our enterprising media, someone who does this sort of thing for a living, really ought to ask him about this, dontcha think?<\/p>\n