State's jobless fund shrinks

Nevada's unemployment trust fund has plunged to $70 million as record numbers of Nevadans seek jobless benefits at levels not seen since the Great Depression.

Cindy Jones, administrator for the Nevada Employment Security Division, said Monday that the trust fund is down from $806 million a year ago, and her agency many have to borrow as much as $1 billion from the federal government in 2010 to keep paying benefits.

Nevada's jobless rate climbed to a record 12 percent in June. The rapid spike was unexpected and depleted the trust fund faster than anticipated, Jones said.

Eighteen states currently are borrowing money to pay unemployment benefits, and that number is expected to double in coming months, Jones told the Legislature's Subcommittee for Federal Stimulus Oversight.

"We are developing our strategies," she said. "The situation changes all the time. We hope action will be taken at the federal level."

About 169,800 Nevadans were out of work in June, according to the Department of Employment, Training and Rehabilitation. Nearly 1,900 unemployed workers in Nevada have exhausted their unemployment benefits.

Largely through the extension of federal programs, workers can receive unemployment pay for as long as 79 weeks. Jones said Congress is considering adding 13 more weeks, bringing the maximum to 92 weeks.

"We expect numbers to worsen in the next couple of months," said DETR Director Larry Mosley.