Kentucky businesses will save about $165 million on federal unemployment taxes because state leaders have paid off a $972 million federal loan. Democratic Gov. Steve Beshear said state officials paid off the loan two years ahead of schedule. Kentucky began borrowing from the federal government in 2009 when a combination of high unemployment and fewer jobs meant more people qualified for unemployment benefits than the state had money to pay.
While Tuesday’s economic report showed positive signs that the country’s sluggish recovery may be speeding up, a recent report released by the Kentucky Center for Economic Policy suggests the picture isn’t quite as rosy in the Commonwealth.