It is tempting to blame the current cash crunch facing the Ohio unemployment insurance program on the economic downturn affecting most of the nation. Indeed, higher unemployment rates during recent months - and probably to continue during 2009 - are an important factor.
But according to a report by the Urban Institute of Washington, D.C., the problem has been building in Ohio for several years. The institute's report notes that the program's trust fund contained about $2 billion at the end of 2000 - but has been drawn down to a month-by-month survival status. By the end of this year, the fund is expected to have just $28 million on hand. It doles out about $35 million a week.
Like officials in most states, Gov. Ted Strickland is seeking help from the federal government. Reportedly, the state is asking for loans of about $550 million to carry it through February. Members of Congress seem sympathetic and probably will approve help for states.
But, assuming the aid comes in the form of loans, it will have to be paid back. And if the imbalance between revenue and disbursements goes back as far as the Urban Institute report indicates, the problem in Ohio will not go away.
Strickland and legislators need to address the imbalance soon - but they will have to deal with it carefully. Simply increasing amounts contributed to the fund by employers risks making the downturn even worse that it is. Companies already struggling to make ends meet don't need what would amount to a new tax. Imposing one could create a vicious cycle of driving companies out of business - and paying out even more in benefits to unemployed workers.
We don't envy Strickland and legislators. Theirs is a difficult responsibility to address. Still, it is a responsibility - and they need to come up with a solution quickly.