Wednesday, May 30, 2007
Contact: Jessica Robinson, 573-751-0290
Blunt's Economic Policies Result in Early Pay Off of Inherited Federal Debt
JEFFERSON CITY– Gov. Matt Blunt today announced the state has fulfilled its commitment to repay an unemployment insurance debt incurred during 2003 and 2004 when the state was in the midst of a $1.1 billion deficit. Missouri paid $135,456,624 to the U.S. Department of Labor on May 25 signaling the end of an insolvent fund that pays benefits to unemployed workers. The Missouri Department of Labor paid the debt four months before the end of the federal fiscal year, saving Missouri employers $2,205,688 in interest charges.
"I am committed to creating an entrepreneurial climate in Missouri that leads to the creation of quality, family supporting jobs," Blunt said. "Repayment of this loan removes the threat of higher federal taxes on Missouri businesses and allows them to focus their resources on future growth."
Through a combination of factors, including better management, legislative changes and an improving economy, Missouri has repaid $288 million to the federal government since January 2005. The governor's pro-jobs, pro-growth polices have contributed towards the state's economic growth. Blunt supported significant litigation and workers' compensation reforms and passed the Quality Jobs Act, which is making Missouri a facilitator of job creation. Since January 2005, Missouri employers have created more than 93,000 jobs.
The Missouri Department of Labor will continue to monitor the solvency of the unemployment compensation fund to prevent future shortfalls that negatively impact Missouri's economy.