HONOLULU (AP) – The Hawaii fund that pays unemployment benefits is out of debt.
In December, the state had to borrow money from the U.S. government to pay jobless claims after exhausting the unemployment fund.
The state had anticipated owing $1 million in interest but the federal government waived accrued interest of $371,000.
The Department of Labor and Industrial Relations said Friday the state avoided having to pay the accrued interest because the governor approved temporarily replenishing the Unemployment Trust Fund from the state treasury.
Officials say that will lead to a savings for employers of $1.2 million.
Chamber of Commerce of Hawaii President Jim Tollefson says that a positive balance for the fund is encouraging news. He says the $1.2 million savings is significant for the business community and Hawaii’s economy.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
See the original article at: KHON2 Developing Stories
