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Mark Arkansas debt ‘paid in full’

OCTOBER 9, 2014 | ARKANSAS NEWS

Editorial, includes “n August, Gov. Mike Beebe promised to pay off the loan by the end of the year. In reality, he accomplished the task about three months sooner. During the Great Recession, when so very many people were out of work, Arkansas’ Unemployment Insurance Trust Fund was depleted, and the state was one of 35 to take advances from the federal government for unemployment benefits, according to an Arkansas News report in August. In April 2011, Arkansas’ debt reached $360 million. The state Legislature authorized the governor to issue bonds to pay back the advance if necessary. Instead, Gov. Beebe worked with labor groups and management to devise another way to raise the money. According to the ANB August report, companies had to pay more into the Unemployment Insurance Tax Fund for each employee through a reduction in tax credits. Recipients of unemployment benefits faced stricter requirements and a shorter period of eligibility. Those concessions, coupled with a recovering economy, made it possible to pay of the debt this year, Gov. Beebe said in an August column and radio address. Not every state that borrowed federal money can make the same claim. … That’s good news for all of us.”

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