With Pennsylvania's unemployment compensation fund plummeting by almost $400 million in six weeks, the Rendell administration said yesterday that it would seek federal help before the fund becomes insolvent, as early as next month.The fund's balance, just under $1 billion at the end of December, slid to $602 million in early February as unemployment claims rose and contributions through payroll taxes decreased.
The unemployment rate in Pennsylvania has climbed to 6.7 percent from 4.9 percent a year ago. The state Department of Labor and Industry has processed an average of 46,000 initial claims a week since Jan. 1, a 52 percent increase over last year.
Sandi Vito, acting secretary of labor and industry, told the Senate Appropriations Committee yesterday that the state might request about $250 million from the federal government, but that the amount was not firm.
Pennsylvania's two major public-sector pension plans on Tuesday told state lawmakers that together their investments lost more than $28 billion in value last year.
Officials who oversee the separate funds for state workers and public
school employees also warned that a sharp increase in taxpayer
subsidies looms because stock market losses will make a
long-anticipated 2012 rate spike much steeper than recently projected.
